(Alliance News) - Nostra Terra Oil & Gas Co PLC announced ambitious growth plans for 2022 on Wednesday, with the oil company hoping to build on the positive momentum of 2021.
The Texas-focused oil and gas exploration and production company plans to expand its drilling operations, with three to four new wells in 2022. It will own just less than a 33% working interest in a new well in Pine Mills, and plans to own 90% WI in two to three new wells in the Permian Basin.
The wells will be funded from the company's cash reserves and cash from its oil production portfolio. Nostra also plans to pursue opportunities in gas in Tunisia, which hopes to capitalise on the current strength of the gas market.
Nostra's share price rose by 4.6% to 0.35 pence each on Wednesday morning in London.
Matt Lofgran, Nostra Terra's chief executive officer, said: "Nostra Terra finished the year in a strong position. The Company is cashflow positive to the corporate level and have multiple wells planned to drill throughout the year, all funded without need for dilution. We anticipate these wells having a strong contribution to cashflow after allowing for further investment for growth in other areas. In addition to this we continue to work on additional opportunities in other areas of the world that we feel could have a large impact to our growth."
Nostra noted that its positive outlook for 2022 follow a strong 2021 which saw production ramp up in the second half, with production in the third quarter of the year up 16% to 100 barrels of oil per day from the first half average of 84 barrels.
Nostra has yet to release its fourth quarter results, with the third quarter results having been released early November.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Nostra Terra (NTOG)