REG - Nostra Terra O&G Co - Final Results <Origin Href="QuoteRef">NTOG.L</Origin>

Nostra Terra Oil and GasAnnouncement

16/07/2015 08:24

RNS Number : 5765O
Nostra Terra Oil & Gas Company PLC
29 May 2015
Nostra Terra Oil & Gas Company PLC
29 May 2015
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Final Results for the year ended 31 December 2014
Highlights
 49% increase in revenue to 1,267,000 (2013:851,000)
 90% increase in gross profit to 997,000 before depletion, depreciation and amortization (2013: 526,000) 
 100% increase in net production to 35,380 BOE (2013: 17,673)
 Added 9 more producing wells, giving a total of 20 wells in production
 Acquisition of 100% of White Buffalo Prospect in Wyoming
 Acquired interests in a further 6 wells
 Raised 1,750,000 via a placing of new shares
 Maintained a positive cash flow throughout the year, despite a 50% fall in the price of oil.
Post balance sheet highlights 
 Acquired a 1% working interests in two separate prospects along the Eagle Ford Trend, one of the most prolific hydrocarbon plays in the United States 
 Evaluated additional productive formations in the Chisholm Trail Prospect
 Progressed licensing and permits at the White Buffalo Prospect
For further information please visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc +1 480 993 8933
Matt Lofgran, CEO
mlofgran@ntog.co.uk
Sanlam Securities UK Limited +44 207 628 2200
(Nominated adviser and broker)
Lindsay Mair / James Thomas / Jamie Vickers
Gary Middleton (PR) +44 7951 603289
Chief Executive's report
I am pleased to present the annual report and accounts of Nostra Terra Oil and Gas Company plc for the year ended 31 December 2014. This was a year of continuing success, despite the challenge presented by the sharp, and unexpected, fall in the price of oil in the fourth quarter. This hurt the entire sector, but Nostra Terra continued to post an increase in revenue thanks to the quality of the prospects we invest in. We retained a positive cash flow throughout the year as we reaped the rewards of building a solid platform of steady production revenue.
Exploration and production 
In line with our commitment to take larger steps to grow the company, we acquired a 100 per cent interest in the White Buffalo Prospect in Wyoming. This added a new state to our geographical footprint and for the first time made Nostra Terra the operator of a sizeable acreage over which we will have complete control. 
We also continued structuring our portfolio to provide a spread of strong and reliable long-term revenues and added depth with several sensibly judged investments in the Chisholm Trail Prospect. 
As we entered the downturn in oil prices, we became more focused on getting involved in plays that could deliver good economics during periods of lower oil prices. Post year-end we made our first acquisitions in the Eagle Ford basin in South Texas, an area that we believe will achieve those goals. We will continue to look to expand further in such areas throughout 2015.
Financial highlights
I am delighted to report that in 2014 our revenues grew to 1,267,000 from 851,000 in 2013 - an increase of 49%. Gross profit (before depletion, depreciation and amortisation) increased to 997,000 against 526,000 in 2013, an increase of 90%. 
This strong cash position gave us the agility to acquire the White Buffalo Prospect as soon as this extremely promising opportunity became available. We conducted a placing of new shares, which was oversubscribed and yielded 1.75m. 
Summary
Nostra Terra made progress throughout 2014 and we will seek to grow production and revenues further, whilst maintaining low overheads throughout 2015. I want to thank Nostra Terra's shareholders for their continuing loyalty to our company. 
Matt Lofgran
Chief Executive Officer
Consolidated income statement
For the year ended 31 December 2014



2014
2013



000
000





Revenue


1,267
851





Cost of sales




Production costs


(268)
(195)
Exploration and appraisal


(2)
(130)
Depletion, depreciation and amortisation


(1,396)
(976)





Total cost of sales


(1,666)
(1,301)



GROSS (LOSS)/PROFIT


(399)
(450)
Share based payment


(19)
(4)
Administrative expenses


(318)
(1,052)



OPERATING LOSS


(736)
(1,506)





Finance income


-
62
Finance expense


(107)
(110)



LOSS BEFORE TAX


(843)
(1,554)





Tax (Expense)recovery


-
-



LOSS FOR THEYEAR


(843)
(1,554)



Attributable to:




Owners of the company


(843)
(1,554)



Earnings per share expressed




In pence per share:









Continued operations




Basic and diluted (pence)


(0.029)
(0.059)








Consolidated statement of comprehensive income
For the year ended 31 December 2014

2014
2013

000
000



Loss for the year 
(843)
(1,554)



Other comprehensive income:


Currency translation differences
(249)
102

Total comprehensive income for the year
(1,092)
(1,452)

Total comprehensive income attributable to:


Owners of the company
(1,092)
(1,452)

Consolidated statement of changes in equity
For the year ended 31 December 2014

Share
Capital
Share
Premium
Share
Options
Reserve
Translation
Reserves
Retained
losses
Total

000
000
000
000
000
000







As at 1 January 2013
2,465
9,104
115
(28)
(7,745)
3,911







Shares issued
311
942
-
-
-
1,253
Share issue costs
-
(55)
-
-
-
(55)
Foreign exchange translation
-
-
-
102
-
102
Loss after tax for the year
-
-
-
-
(1,554)
(1,554)
Share based payments
-
-
4
-
-
4

As at 31 December 2013
2,776
9,991
119
74
(9,299)
3,661








Shares issued
584
1,166
-
-
-
1,750
Share issue costs
-
(97)
-
-
-
(97)
Foreign exchange translation
-
-
-
(249)
-
(249)
Loss after tax for the year
-
-
-
-
(843)
(843)
Share based payments
-
-
19
-
-
19








As at 31 December 2014
3,360
11,060
138
(175)
(10,142)
4,241

31 December 2014



2014
2013



000
000





ASSETS




NON-CURRENT ASSETS




Goodwill


-
-
Other intangibles


4,283
2,938
Property, plant and equipment
- oil and gas assets

521
489






4,804
3,427
CURRENT ASSETS




Trade and other receivables


491
543
Cash and cash equivalents


861
371






1,352
914
LIAIBLITIES




CURRENT LIABILITIES




Trade and other payables


293
336
Financial liabilities - borrowings


1,010
344






1,303
680








NET CURRENT ASSETS


49
234
NON CURRENT LIABILITIES




Financial liabilities - borrowings


612
-



NET ASSETS


4,241
3,661








EQUITY AND RESERVES




Called up share capital


3,360
2,776
Share premium


11,060
9,991
Translation reserves


(175)
74
Share option reserve


138
119
Retained losses


(10,142)
(9,299)






4,241
3,661










Company statement of financial position
31 December 2014



2014
2013



000
000





ASSETS




NON-CURRENT ASSETS




Fixed asset investments


4,124
4,027






4,124
4,027













CURRENT ASSETS




Trade and other receivables


19
6
Cash and cash equivalents


552
30






571
36








LIAIBLITIES




CURRENT LIABILITIES




Trade and other payables


65
47






65
47








NET CURRENT LIABILITIES


506
(11)








NET ASSETS


4,630
4,016








EQUITY AND RESERVES




Called up share capital


3,360
2,776
Share premium


11,060
9,991
Share option reserve


138
119
Retained losses


(9,928)
(8,870)






4,630
4,016










Consolidated statement of cash flows
for the year ended 31 December 2014



2014
2013



000
000





Cash flows from operating activities




Cash generated/(consumed) by operations


222
61
Interest paid


(163)
-
Interest received


-
-



Cash generated/(consumed) by operations


59
61





Cash flows from investing activities




Purchase of intangibles - new oil and gas properties


(2,527)
(578)
Purchase of plant and equipment


(245)
(116)
Proceeds from sale of assets


295
-
Interest received


-
-



Net cash from investing activities


(2,477)
(694)








Cash flows from financing activities




Issue of new shares


1,653
695
New borrowing


2,221
-
Repayment of borrowings


(966)
-



Net cash from financing activities


2,908
695








Increase/(decrease) in cash and cash equivalents


490
62





Cash and cash equivalents at beginning of year


371
309



Cash and cash equivalents at end of year


861
371








Represented by:




Cash at bank


861
371










1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS


2014
2013


000
000




Loss before tax for the year

(736)
(1,554)




Depreciation of property, plant and equipment

127
84
Amortisation of intangibles

577
806
Well impairments

-
86
Loss on disposal of assets

691
105
Foreign exchange loss/(gains) non-cash items

(521)
148
Finance income

-
-
Share based payment

19
4


Operating cash flows before movements in working capital

157
(321)






Increase/(decrease) in finance charge provision

56
-
Decrease/(increase) in receivables

52
611
Increase/(decrease) in payables

(43)
(229)


Cash generated (Consumed) by continuing operations

222
61









2014
2013



000
000





Cash generated (consumed) by operations


733
(355)



Net cash from operating activities


733
(355)










Cash flows from investing activities 




Interest received


-
-



Net cash from investing activities


-
-








Cash flows from financing activities




Inter group loan (advances)


(1,864)
(322)
Issue of new shares


1,653
695



Net cash from financing activities


(211)
373








Increase/(decrease) in cash and cash equivalents


522
18





Cash and cash equivalents at beginning of year


30
12



Cash and cash equivalents at end of year


522
30



Represented by:




Cash at bank


552
30










2014
2013


000
000




Loss before tax for the year

(1,058)
(2,325)
Impairment of cost of investments

1,289
1,886
Foreign exchange loss/(gain) non-cash items

478
322
Share based payment

19
4


Operating cash flows before movements in working capital 

728
(113)




(Increase)/decrease in receivables

(13)
1
Increase/(decrease) in payables

18
(243)


Cash generated/(consumed) by continuing operations

733
(355)






1. SEGMENTAL ANALYSIS

US mid-
Continent
Head 
Office
Total

2014
2014
2013

000
000
000




Segment results - 2014







Revenue
1,267
-
1,267




Operating loss before depreciation,



Amortisation share-based payment



Charges and restricting costs:
(275)
(228)
(503)
Depreciation of tangibles
(127)
-
(127)
Amortisation of intangibles
(579)
-
(579)
Well impairment
(95)
-
(95)
Share based payment
-
(19)
(19)

Operating loss
(1,076)
(247)
(1,323)
Realised exchange (loss)/gain
-
480
480
Finance income
-
-
-

Gains (loss) before taxation
(1,076)
233
(843)





Segment assets



Property, plant and equipment
521
-
521
Intangible assets
4,283
-
4,283
Cash and cash equivalents
309
552
861
Other assets
472
19
491


5,585
571
6,156










US mid
Continent
Ukraine
Head
Office
Total

2013
2013
2014
2013

000
000
000
000





Segment results - 2013









Revenue
851
-
-
851





Operating profit/(loss) before
depreciation, amortisation share-based
payment charges and restructuring costs:
(283)
-
(225)
(508)
Depreciation of tangibles
(84)
-
-
(84)
Amortisation of intangibles
(806)
-
-
(806)
Well impairment
(86)
-
-
(86)
Shae based payment
(4)
-
-
(4)

Operating loss
(1,263)
-
(225)
(1,488)





Realised exchange (loss)/gain
(129)
-
-
(129)
Finance income
63
-
-
63

Gain (loss) before taxation
(1,329)
-
(225)
(1,554)






Segment assets




Property, plant and equipment
489
-
-
489
Intangible assets
2,938
-
-
2,938
Cash and cash equivalents
338
3
30
371
Other assets
537
-
6
543


4,302
3
36
4,341

2. OPERATING LOSS FOR THE YEAR
 The operating loss for the year is stated after charging/crediting):


2014
2013


000
000




Auditors' remuneration (company 21,000) - 2013: 17,000)

21
17
Depreciation of property, plant and equipment

127
84
Amortisation of intangibles

577
806
Well impairment

-
86
Foreign exchange differences

(480)
208
Loss on disposal of exploration and evaluation and oil and gas assets

691
105






The analysis of administrative expenses in the consolidated income statement by nature of expense:


2014
2013


000
000




Directors' remuneration

228
233
Social security costs

15
15
Directors' fees

24
32
Travelling and entertaining

74
92
Accountancy fees

149
-
Legal and professional fees

180
274
Auditors' remuneration

21
17
Foreign exchange differences

(480)
208
Other expenses

107
181




318
1,052


8. EARNING PER SHARE
EPS - loss

2014
2013




Loss attributable to ordinary shareholders (000)

(843)
(1,554)
Weighted average number of shares

2,922,053,277
2,647,751,184






Continued operations:



Basic and diluted EPS - loss (pence_

(0.029)
(0.059)
Total

-
-






The diluted loss per share is the same as the basic loss per share as the loss for the year has an antidilutive effect.


2014
2013




Gross profit before depreciation, depletion and
amortisation

997
526
EPS on gross profit before depletion, depreciation and amortisation (pence)

0.034
0.020










2014
2013


000
000
Reconciliation from gross loss to gross profit before
depletion, depreciation and amortisation







Gross (loss)/profit

(399)
(450)
Add back:



Depletion, depreciation and amortisation

1,396
976


Gross profit before depreciation, depletion and
amortisation

997
526








 
9. Availability of Annual Report and Notice of AGM
The Company's AGM will be held at 11:30am on 22 June 2015 at Jeffrey's Henry LLP, 5-7 Cranwood Street, London EC1V 9EE. Notice of the AGM is being posted to shareholders today, together with a copy of the full report and accounts. A copy of the report and accounts will also be available to download later today from Nostra Terra's website at www.ntog.co.uk.

This information is provided by RNS
The company news service from the London Stock Exchange
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