REG - Nostra Terra O&G Co - Q1 Production and Operations Update

Nostra Terra Oil and GasAnnouncement

26/05/2022 07:00

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RNS Number : 8407M  Nostra Terra Oil & Gas Company PLC  26 May 2022

26 May 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Q1 Production and Operations Update

 

 

Nostra Terra (AIM: NTOG), the international oil & gas exploration and
production company with a portfolio of development and production assets in
Texas, USA, is pleased to provide a production and operations update for the
Company.

 

Highlights

 

·    6% increase in Q1 Company revenue ($810,699 Q1-22 vs $767,000 Q4-21)

·    14% decrease in Q1 average net daily production (102 bopd Q1-22 vs
118 bopd Q4-21) and an increase of 21% vs H1 2021 average (84 bopd)

·    25% increase in Q1 oil sales price per bbl ($88.16 Q1-22 vs $70.46
Q4-21)

·    Fouke 2 well at Pine Mills put into production, exceeding
expectations (NTOG 32.5% Working Interest) (post-period)

·    Current Company production is approx. 140 bopd (net), an increase of
37% over Q1-22

·    First Grant East well drilled and completed (post-period)

 

Production

During the first quarter net sales were 9,196 barrels (100% oil) resulting in
$810,699 of revenue with the average realized sales price for the period being
$88.16 per barrel. Production volumes were lower in Q1 22 vs Q4 21 due to
seasonal storm related down time at the Pine Mills production facility in
February. Current production is approx. 140 bopd (net), a 37% increase over
Q1-22. This includes production from the Fouke 2 well at Pine Mills but
nothing is yet included from the Grant East 1 well in West Texas,

 

                Production (Sales) - Bbls                     USD$
                Gross       NTOG - Net (Monthly)  NTOG - Net  NTOG Net Revenue

                (Monthly)                         (Daily)
 January 2022   6,234       3,605                 116         $270,286
 February 2022  3,804       1,834                 59          $154,810
 March 2022     7,132       3,757                 121         $385,603
 Q1-22 TOTAL    17,170      9,196                 102         $810,699

 

 

 

Operations

 

Pine Mills

Per RNS 16 May 2022, the Fouke 2 well at Pine Mills was put into production in
May 2022 and sales have commenced (to be reflected in Q2-2022). The well was
tested and flowed at a rate of 145 bopd over a 24-hour period with a 0%
watercut and is currently on production at 140 bopd with a 0% water cut.  The
offset Fouke 1 current production rate has been increased to 110 bopd also
with a 0% water cut with the objective of increasing this further as
previously reported.

 

Additional facility improvements at Pine Mills (where the Company owns 100%
WI) are being planned to improve both handling capacity and up-time.

 

Permian Basin

The Company acquired the Grant East Lease (100% WI) during the first quarter
and drilled the Grant East 1 well in May 2022. The well is currently being
completed and tested after it was stimulated.

 

 

Matt Lofgran, Nostra Terra's Chief Executive Officer, said:

 

"On the 5(th) of January we announced our 2022 corporate goals, one of which
was to drill 3-4 new wells, using internally generated funds. It's May and we
have already drilled 2 new wells this year, using these resources, and are
confident that we can achieve this objective before year end as planned.

 

However, our primary focus remains on increasing cashflow, where we have been
making great strides this year due to a combination of increased production
volumes and higher average pricing.  I look forward to updating everyone both
on our progress towards achieving our goals and the results from the Grant
East 1 in due course."

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

For further information, contact:

 Nostra Terra Oil and Gas Company plc          Tel:   +1 480 993 8933

 Matt Lofgran, CEO

 Beaumont Cornish Limited                      Tel:   +44 (0) 20 7628 3396

 (Nominated Adviser)

 James Biddle/ Roland Cornish

 Novum Securities Limited (Broker)             Tel:   +44 (0) 207 399 9425

 Jon Belliss

                                               Tel:    +44 (0) 7791 892509

 Lionsgate Communications (Public Relations)

 Jonathan Charles

 

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