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LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Tuesday said the borrowing base of its senior lending facility with the Washington Federal Bank has increased significantly.
The exploration company said it secured an increase of USD750,000 on its borrowing base. Prior to that, the borrowing base stood at USD1.2 million.
The redetermination was calculated based on production as of May and was based solely on oil production at Pine Mills, located in the US state of Texas. Looking forward, Nostra Terra said it expects a further positive increase at the next redetermination.
Meanwhile, in the Permian Basin, also in Texas, the company said it initiated the commercial production at the G6 well. It also said that plans for further drilling in the second half of the year are on track and will be announced "shortly".
"We are delighted at our progress this year and the increase in the size of borrowing base of the senior landing facility is testament to the resources we have invested in developing our current portfolio," said Chief Executive Matt Lofgran.
"Being cashflow positive also means that any funds used from the senior landing facility can go towards drilling new wells to continue our growth," added Lofgran.
Shares in Nostra Terra were trading 2.4% higher on Tuesday at 4.30 pence each.
