REG - Nostra Terra O&G Co - Q2 Production and Operations Update

Nostra Terra Oil and GasAnnouncement

01/09/2022 07:00

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RNS Number : 8504X  Nostra Terra Oil & Gas Company PLC  01 September 2022

1 September 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Q2 Production and Operations Update

Superb Results - 33% increase in Revenue, 22% increase in Production

 

 

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

 

·    33% increase in Q2 Company revenue ($1,141,739 Q2-22 vs $810,699
Q1-22)

·    Highest quarterly revenue in Company history

·    22% increase in Q2 average net daily production (125 bopd Q2-22 vs
102 bopd Q1-22)

·    7% increase in Q2 oil sales price per bbl ($98.28 Q2-22 vs $94.43
Q1-22)

 

Production

During the second quarter net sales were 11,260 barrels (100% oil) resulting
in $1,141,739 of revenue with the average realised sales price for the period
being $104.97 per barrel. Production volumes were higher in Q2 22 vs Q1 22 due
primarily to the addition of the Fouke #2 well in May.

 

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

              (Monthly)                         (Daily)
 April 2022   6,726       3,510                 117         $313,382
 May 2022     9,960       4,116                 133         $437,490
 June 2022    9,108       3,634                 117         $390,867
 Q2-22 TOTAL  25,795      11,260                124         $1,141,739

 

Sales figures are based on an accruals basis and may vary slightly from
actuals.

The Company continues to produce strong and increasing cashflow.

 

Operations

 

Pine Mills

As previously reported, production facility improvement work at the Pine Mills
field (where the Company owns 100% WI) which were planned to enhance both the
handling capacity and up-time along with a five well workover program has
commenced. Workovers on the first two production wells are complete and now
work on the water handling and disposal system facility is underway.  This
facility work is anticipated to take several weeks and once complete will
increase the treating capacity of the facility enabling the existing pumping
units to increase their flow rates.  It is anticipated that the increased
fluid rates will result in increased oil production across the field. After
the disposal work is finished the three additional well workovers will be
completed.

 

Permian Basin

Technical work on the results of the Grant East #1 well continues.
  Integrating the Grant East #1 results into a larger regional context has
uncovered attractive opportunities in other parts of the lease that were not
initially anticipated.  Planning and permitting for a second well within the
lease are ongoing and it is now expected that one of these new opportunities
will be drilled prior to year-end.

 

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

 

"Nostra Terra achieved the highest quarterly revenue in Company history,
generating a 33% increase in revenue when compared to the previous quarter
through a combination of increased production and increased commodity prices.
As a result, we're in a very strong position, with a profitable portfolio of
existing opportunities, such as the Fouke 2, where our investment reached
payback in less than 3 months, that can be developed from internal resources.
We also have the ability to fund future growth while retiring past debt
obligations. This allows us to pursue a mix of exciting opportunities,
including development and exploration, to expand our portfolio.  It's our
expectation that the results of the workover and facility improvement activity
at Pine Mills will deliver a further increase in production from our existing
wells while providing the treating capacity necessary for the new
opportunities we are developing resulting from the Fouke area successes.

 

We've delivered two sequential quarters of Company revenue increases, while
reducing leverage and running and active drilling campaign. It's been an
excellent period for the Company, and I am very optimistic about the future.
I look forward to reporting on the results of our current activities in a
future release."

 

 

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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