REG - Nostra Terra O&G Co - Q4 Production and Operations Update

Nostra Terra Oil and GasAnnouncement

23/02/2022 07:00

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RNS Number : 4909C  Nostra Terra Oil & Gas Company PLC  23 February 2022

23 February 2022

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Q4 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

 

·    37% increase in Company revenue ($767,000 Q4 vs $558,000 Q3)

·    23% increase in net daily production (118 bopd Q4 vs 96 bopd Q3)

·    10% increase in oil sales price per bbl ( $70.52 Q4 vs $63.57 Q3)

·    Drilling of a new development well (Fouke 2), at Pine Mills (NTOG
32.5% Working Interest)

·    Initiation of field infrastructure work at Pine Mills to increase
handling capacity and reliability

·    Planning underway for up to 3 new wells in the Permian Basin by year
end 2022

 

 

Production

During the fourth quarter net sales were approximately 10,885 barrels (100%
oil) resuting in approximately $767,000 of revenue. Average realized sales
price for the period was approximately $70 per barrel.

 

 

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

                 (Monthly)                         (Daily)
 July 2021       4,192       2,833                 91          $186,000
 August 2021     4,428       3,111                 100         $189,000
 September 2021  4,137       2,846                 95          $183,000
 October 2021    5,260       3,500                 113         $259,000
 November 2021   5,227       3,694                 123         $264,000
 December 2021   5,306       3,691                 119         $244,000

 

 

 

Operations

A new development well at Pine Mills (Fouke 2) is nearing total depth. If
successful, the Fouke 2 will be immediately put into production using existing
infrastructure as the existing tank battery at the Fouke 1 is being expanded
to increase its storage and throughput capacity.

 

Plans for drilling in the Permian Basin this year are on track with the
Company organizing tenders for the necessary equipment during the period. The
Company plans to update the market with additional details of the anticipated
drilling program in due course.

 

The Company also continues to work towards diversifying its asset base and is
continually reviewing accretive production, development and exploration
opportunities both inside and outside the USA.

 

 

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

 

"Revenue and production increased significantly  in the fourth quarter and
the Company has also made a great start on executing its plans for 2022 during
the early part of Q1 2022.

 

In East Texas drilling is underway at Pine Mills concurrent with work to
expand and improve the infrastructure.. While in West Texas planning is
underway for our big push to increase production through a similar development
drilling program there. Finally, the recent increase in commodity prices has
confirmed our bullish price expectations and as a result we remain unhedged,
selling production at market rates.  I am anticipating a very active and
profitable 2022 for NTOG and look forward to reporting on our progress in
subsequent periods. "

 

 

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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