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You mean this sort of pointless? https://www.juniorminingnetwork.com/market-data/stock-quote/fosterville-south-exploration.html

The RNS was needed because of the interview given by Andrew Bell just over a week ago in which he stated that RRR would seek to list it's subsidiary. POW has taken a publicly different position: the only way to resolve the difference is a proper review.

In a further demonstration of its ongoing positive relationship, Washington Federal Bank has provided a release of lien over the acreage so the farmout is not encumbered. Once the well is drilled and producing, Nostra Terra will have the ability (at its sole discretion) to add its WI in the well to the collateral securing the existing Senior Facility in order to have access potentially to additional funds for further drilling and/or acquisitions.

Anyone who has had any dealings with banks with regards to security knows that they do not release security willingly. WFB has had a detailed look at what is proposed and they must like it.

Now that they have released the security there is nothing to stop NTOG selling that asset to someone else. WFB would have no call on the funds.

Second most important bIt:

There is potential to drill up to five new wells within the farmout area. A successful well could further significantly increase both production rates and reserves. In addition, Nostra Terra still owns 100% WI in the rest of Pine Mills field (2,320 acres), encompassing existing producing wells and infrastructure. There remains scope for further increases in production in this area as well as potential for farm-out of additional undrilled acreage

Another farm in or two equals new wells in which NTOG is carried. NTOG could end up with a lot of new production and proved up reserves; exactly what WFB will be looking at. If the new well on the 80 acres is successful then the reserves on that well move to Proved Developed Producing and the other potential drills at that location get moved up to Proved Not Developed: these have value for the balance sheet and for the lending facility. It may be that the well has consequences for more acreage outside the 80 acres.

This could end up being significant for NTOG. The shame is that it could have been done a couple of years ago and in the meantime producing. The Mesquite thing really was a mistake.

You can make your own guesses as to likely production, mine would be 125/150 bopd on the IP. If 80 bopd is projected then they are paying $10,000 per barrel: well you can pick up production for $10,000/$15,000 per producing barrel, so why would you take the risk?

DYOR

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