Last checked at 29 May 2015 07:00
Nostra Terra Oil & Gas Company PLC
29 May 2015
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Final Results for the year ended 31 December 2014
Highlights
· 49% increase in revenue to £1,267,000 (2013:£851,000)
· 90% increase in gross profit to £997,000 before depletion, depreciation and amortization (2013: £526,000)
· 100% increase in net production to 35,380 BOE (2013: 17,673)
· Added 9 more producing wells, giving a total of 20 wells in production
· Acquisition of 100% of White Buffalo Prospect in Wyoming
· Acquired interests in a further 6 wells
· Raised £1,750,000 via a placing of new shares
· Maintained a positive cash flow throughout the year, despite a 50% fall in the price of oil.
Post balance sheet highlights
· Acquired a 1% working interests in two separate prospects along the Eagle Ford Trend, one of the most prolific hydrocarbon plays in the United States
· Evaluated additional productive formations in the Chisholm Trail Prospect
· Progressed licensing and permits at the White Buffalo Prospect
For further information please visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc +1 480 993 8933
Matt Lofgran, CEO
mlofgran@ntog.co.uk
Sanlam Securities UK Limited +44 207 628 2200
(Nominated adviser and broker)
Lindsay Mair / James Thomas / Jamie Vickers
Gary Middleton (PR) +44 7951 603289
Chief Executive's report
I am pleased to present the annual report and accounts of Nostra Terra Oil and Gas Company plc for the year ended 31 December 2014. This was a year of continuing success, despite the challenge presented by the sharp, and unexpected, fall in the price of oil in the fourth quarter. This hurt the entire sector, but Nostra Terra continued to post an increase in revenue thanks to the quality of the prospects we invest in. We retained a positive cash flow throughout the year as we reaped the rewards of building a solid platform of steady production revenue.
Exploration and production
In line with our commitment to take larger steps to grow the company, we acquired a 100 per cent interest in the White Buffalo Prospect in Wyoming. This added a new state to our geographical footprint and for the first time made Nostra Terra the operator of a sizeable acreage over which we will have complete control.
We also continued structuring our portfolio to provide a spread of strong and reliable long-term revenues and added depth with several sensibly judged investments in the Chisholm Trail Prospect.
As we entered the downturn in oil prices, we became more focused on getting involved in plays that could deliver good economics during periods of lower oil prices. Post year-end we made our first acquisitions in the Eagle Ford basin in South Texas, an area that we believe will achieve those goals. We will continue to look to expand further in such areas throughout 2015.
Financial highlights
I am delighted to report that in 2014 our revenues grew to £1,267,000 from £851,000 in 2013 - an increase of 49%. Gross profit (before depletion, depreciation and amortisation) increased to £997,000 against £526,000 in 2013, an increase of 90%.
This strong cash position gave us the agility to acquire the White Buffalo Prospect as soon as this extremely promising opportunity became available. We conducted a placing of new shares, which was oversubscribed and yielded £1.75m.
Summary
Nostra Terra made progress throughout 2014 and we will seek to grow production and revenues further, whilst maintaining low overheads throughout 2015. I want to thank Nostra Terra's shareholders for their continuing loyalty to our company.
Matt LofgranChief Executive Officer
Consolidated income statement
For the year ended 31 December 2014
2014 | 2013 | |||
£000 | £000 | |||
Revenue | 1,267 | 851 | ||
Cost of sales | ||||
Production costs | (268) | (195) | ||
Exploration and appraisal | (2) | (130) | ||
Depletion, depreciation and amortisation | (1,396) | (976) | ||
Total cost of sales | (1,666) | (1,301) | ||
─────── | ─────── | |||
GROSS (LOSS)/PROFIT | (399) | (450) | ||
Share based payment | (19) | (4) | ||
Administrative expenses | (318) | (1,052) | ||
─────── | ─────── | |||
OPERATING LOSS | (736) | (1,506) | ||
Finance income | - | 62 | ||
Finance expense | (107) | (110) | ||
─────── | ─────── | |||
LOSS BEFORE TAX | (843) | (1,554) | ||
Tax (Expense)recovery | - | - | ||
─────── | ─────── | |||
LOSS FOR THEYEAR | (843) | (1,554) | ||
═══════ | ═══════ | |||
Attributable to: | ||||
Owners of the company | (843) | (1,554) | ||
═══════ | ═══════ | |||
Earnings per share expressed | ||||
In pence per share: | ||||
Continued operations | ||||
Basic and diluted (pence) | (0.029) | (0.059) | ||
═══════ | ═══════ | |||
Consolidated statement of comprehensive income
For the year ended 31 December 2014
2014 | 2013 | |
£000 | £000 | |
Loss for the year | (843) | (1,554) |
Other comprehensive income: | ||
Currency translation differences | (249) | 102 |
─────── | ─────── | |
Total comprehensive income for the year | (1,092) | (1,452) |
─────── | ─────── | |
Total comprehensive income attributable to: | ||
Owners of the company | (1,092) | (1,452) |
═══════ | ═══════ |
Consolidated statement of changes in equity
For the year ended 31 December 2014
Share Capital |
Share Premium | Share Options Reserve |
Translation Reserves |
Retained losses |
Total | |
£000 | £000 | £000 | £000 | £000 | £000 | |
As at 1 January 2013 | 2,465 | 9,104 | 115 | (28) | (7,745) | 3,911 |
Shares issued | 311 | 942 | - | - | - | 1,253 |
Share issue costs | - | (55) | - | - | - | (55) |
Foreign exchange translation | - | - | - | 102 | - | 102 |
Loss after tax for the year | - | - | - | - | (1,554) | (1,554) |
Share based payments | - | - | 4 | - | - | 4 |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | |
As at 31 December 2013 | 2,776 | 9,991 | 119 | 74 | (9,299) | 3,661 |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | |
Shares issued | 584 | 1,166 | - | - | - | 1,750 |
Share issue costs | - | (97) | - | - | - | (97) |
Foreign exchange translation | - | - | - | (249) | - | (249) |
Loss after tax for the year | - | - | - | - | (843) | (843) |
Share based payments | - | - | 19 | - | - | 19 |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | |
As at 31 December 2014 | 3,360 | 11,060 | 138 | (175) | (10,142) | 4,241 |
═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ |
31 December 2014
2014 | 2013 | |||
£000 | £000 | |||
ASSETS | ||||
NON-CURRENT ASSETS | ||||
Goodwill | - | - | ||
Other intangibles | 4,283 | 2,938 | ||
Property, plant and equipment - oil and gas assets |
|
521 |
489 | |
─────── | ─────── | |||
4,804 | 3,427 | |||
CURRENT ASSETS | ||||
Trade and other receivables | 491 | 543 | ||
Cash and cash equivalents | 861 | 371 | ||
─────── | ─────── | |||
1,352 | 914 | |||
LIAIBLITIES | ||||
CURRENT LIABILITIES | ||||
Trade and other payables | 293 | 336 | ||
Financial liabilities - borrowings | 1,010 | 344 | ||
─────── | ─────── | |||
1,303 | 680 | |||
─────── | ─────── | |||
NET CURRENT ASSETS | 49 | 234 | ||
NON CURRENT LIABILITIES | ||||
Financial liabilities - borrowings | 612 | - | ||
─────── | ─────── | |||
NET ASSETS | 4,241 | 3,661 | ||
═══════ | ═══════ | |||
EQUITY AND RESERVES | ||||
Called up share capital | 3,360 | 2,776 | ||
Share premium | 11,060 | 9,991 | ||
Translation reserves | (175) | 74 | ||
Share option reserve | 138 | 119 | ||
Retained losses | (10,142) | (9,299) | ||
─────── | ─────── | |||
4,241 | 3,661 | |||
═══════ | ═══════ | |||
Company statement of financial position
31 December 2014
2014 | 2013 | |||
£000 | £000 | |||
ASSETS | ||||
NON-CURRENT ASSETS | ||||
Fixed asset investments | 4,124 | 4,027 | ||
─────── | ─────── | |||
4,124 | 4,027 | |||
─────── | ─────── | |||
CURRENT ASSETS | ||||
Trade and other receivables | 19 | 6 | ||
Cash and cash equivalents | 552 | 30 | ||
─────── | ─────── | |||
571 | 36 | |||
─────── | ─────── | |||
LIAIBLITIES | ||||
CURRENT LIABILITIES | ||||
Trade and other payables | 65 | 47 | ||
─────── | ─────── | |||
65 | 47 | |||
─────── | ─────── | |||
NET CURRENT LIABILITIES | 506 | (11) | ||
─────── | ─────── | |||
NET ASSETS | 4,630 | 4,016 | ||
═══════ | ═══════ | |||
EQUITY AND RESERVES | ||||
Called up share capital | 3,360 | 2,776 | ||
Share premium | 11,060 | 9,991 | ||
Share option reserve | 138 | 119 | ||
Retained losses | (9,928) | (8,870) | ||
─────── | ─────── | |||
4,630 | 4,016 | |||
═══════ | ═══════ | |||
Consolidated statement of cash flows
for the year ended 31 December 2014
2014 | 2013 | |||
£000 | £000 | |||
Cash flows from operating activities | ||||
Cash generated/(consumed) by operations | 222 | 61 | ||
Interest paid | (163) | - | ||
Interest received | - | - | ||
─────── | ─────── | |||
Cash generated/(consumed) by operations | 59 | 61 | ||
Cash flows from investing activities | ||||
Purchase of intangibles - new oil and gas properties | (2,527) | (578) | ||
Purchase of plant and equipment | (245) | (116) | ||
Proceeds from sale of assets | 295 | - | ||
Interest received | - | - | ||
─────── | ─────── | |||
Net cash from investing activities | (2,477) | (694) | ||
─────── | ─────── | |||
Cash flows from financing activities | ||||
Issue of new shares | 1,653 | 695 | ||
New borrowing | 2,221 | - | ||
Repayment of borrowings | (966) | - | ||
─────── | ─────── | |||
Net cash from financing activities | 2,908 | 695 | ||
─────── | ─────── | |||
Increase/(decrease) in cash and cash equivalents | 490 | 62 | ||
Cash and cash equivalents at beginning of year | 371 | 309 | ||
─────── | ─────── | |||
Cash and cash equivalents at end of year | 861 | 371 | ||
═══════ | ═══════ | |||
Represented by: | ||||
Cash at bank | 861 | 371 | ||
═══════ | ═══════ | |||
1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS
2014 | 2013 | ||
£000 | £000 | ||
Loss before tax for the year | (736) | (1,554) | |
Depreciation of property, plant and equipment | 127 | 84 | |
Amortisation of intangibles | 577 | 806 | |
Well impairments | - | 86 | |
Loss on disposal of assets | 691 | 105 | |
Foreign exchange loss/(gains) non-cash items | (521) | 148 | |
Finance income | - | - | |
Share based payment | 19 | 4 | |
─────── | ─────── | ||
Operating cash flows before movements in working capital | 157 | (321) | |
─────── | ─────── | ||
Increase/(decrease) in finance charge provision | 56 | - | |
Decrease/(increase) in receivables | 52 | 611 | |
Increase/(decrease) in payables | (43) | (229) | |
─────── | ─────── | ||
Cash generated (Consumed) by continuing operations | 222 | 61 | |
═══════ | ═══════ | ||
2014 | 2013 | |||
£000 | £000 | |||
Cash generated (consumed) by operations | 733 | (355) | ||
─────── | ─────── | |||
Net cash from operating activities | 733 | (355) | ||
Cash flows from investing activities | ||||
Interest received | - | - | ||
─────── | ─────── | |||
Net cash from investing activities | - | - | ||
─────── | ─────── | |||
Cash flows from financing activities | ||||
Inter group loan (advances) | (1,864) | (322) | ||
Issue of new shares | 1,653 | 695 | ||
─────── | ─────── | |||
Net cash from financing activities | (211) | 373 | ||
─────── | ─────── | |||
Increase/(decrease) in cash and cash equivalents | 522 | 18 | ||
Cash and cash equivalents at beginning of year | 30 | 12 | ||
─────── | ─────── | |||
Cash and cash equivalents at end of year | 522 | 30 | ||
─────── | ─────── | |||
Represented by: | ||||
Cash at bank | 552 | 30 | ||
═══════ | ═══════ | |||
2014 | 2013 | ||
£000 | £000 | ||
Loss before tax for the year | (1,058) | (2,325) | |
Impairment of cost of investments | 1,289 | 1,886 | |
Foreign exchange loss/(gain) non-cash items | 478 | 322 | |
Share based payment | 19 | 4 | |
─────── | ─────── | ||
Operating cash flows before movements in working capital | 728 | (113) | |
(Increase)/decrease in receivables | (13) | 1 | |
Increase/(decrease) in payables | 18 | (243) | |
─────── | ─────── | ||
Cash generated/(consumed) by continuing operations | 733 | (355) | |
═══════ | ═══════ | ||
1. SEGMENTAL ANALYSIS
US mid- Continent | Head Office |
Total | |
2014 | 2014 | 2013 | |
£000 | £000 | £000 | |
Segment results - 2014 | |||
Revenue | 1,267 | - | 1,267 |
Operating loss before depreciation, | |||
Amortisation share-based payment | |||
Charges and restricting costs: | (275) | (228) | (503) |
Depreciation of tangibles | (127) | - | (127) |
Amortisation of intangibles | (579) | - | (579) |
Well impairment | (95) | - | (95) |
Share based payment | - | (19) | (19) |
─────── | ─────── | ─────── | |
Operating loss | (1,076) | (247) | (1,323) |
Realised exchange (loss)/gain | - | 480 | 480 |
Finance income | - | - | - |
─────── | ─────── | ─────── | |
Gains (loss) before taxation | (1,076) | 233 | (843) |
═══════ | ═══════ | ═══════ | |
Segment assets | |||
Property, plant and equipment | 521 | - | 521 |
Intangible assets | 4,283 | - | 4,283 |
Cash and cash equivalents | 309 | 552 | 861 |
Other assets | 472 | 19 | 491 |
─────── | ─────── | ─────── | |
5,585 | 571 | 6,156 | |
═══════ | ═══════ | ═══════ | |
US mid Continent |
Ukraine | Head Office | Total | |
2013 | 2013 | 2014 | 2013 | |
£000 | £000 | £000 | £000 | |
Segment results - 2013 | ||||
Revenue | 851 | - | - | 851 |
Operating profit/(loss) before depreciation, amortisation share-based payment charges and restructuring costs: |
(283) |
- |
(225) |
(508) |
Depreciation of tangibles | (84) | - | - | (84) |
Amortisation of intangibles | (806) | - | - | (806) |
Well impairment | (86) | - | - | (86) |
Shae based payment | (4) | - | - | (4) |
─────── | ─────── | ─────── | ─────── | |
Operating loss | (1,263) | - | (225) | (1,488) |
Realised exchange (loss)/gain | (129) | - | - | (129) |
Finance income | 63 | - | - | 63 |
─────── | ─────── | ─────── | ─────── | |
Gain (loss) before taxation | (1,329) | - | (225) | (1,554) |
═══════ | ═══════ | ═══════ | ═══════ | |
Segment assets | ||||
Property, plant and equipment | 489 | - | - | 489 |
Intangible assets | 2,938 | - | - | 2,938 |
Cash and cash equivalents | 338 | 3 | 30 | 371 |
Other assets | 537 | - | 6 | 543 |
─────── | ─────── | ─────── | ─────── | |
4,302 | 3 | 36 | 4,341 | |
═══════ | ═══════ | ═══════ | ═══════ |
2. OPERATING LOSS FOR THE YEAR
The operating loss for the year is stated after charging/crediting):
2014 | 2013 | ||
£000 | £000 | ||
Auditors' remuneration (company £21,000) - 2013: £17,000) | 21 | 17 | |
Depreciation of property, plant and equipment | 127 | 84 | |
Amortisation of intangibles | 577 | 806 | |
Well impairment | - | 86 | |
Foreign exchange differences | (480) | 208 | |
Loss on disposal of exploration and evaluation and oil and gas assets |
691 |
105 | |
═══════ | ═══════ | ||
The analysis of administrative expenses in the consolidated income statement by nature of expense: | |||
2014 | 2013 | ||
£000 | £000 | ||
Directors' remuneration | 228 | 233 | |
Social security costs | 15 | 15 | |
Directors' fees | 24 | 32 | |
Travelling and entertaining | 74 | 92 | |
Accountancy fees | 149 | - | |
Legal and professional fees | 180 | 274 | |
Auditors' remuneration | 21 | 17 | |
Foreign exchange differences | (480) | 208 | |
Other expenses | 107 | 181 | |
─────── | ─────── | ||
318 | 1,052 | ||
═══════ | ═══════ | ||
8. EARNING PER SHARE
EPS - loss | 2014 | 2013 | |||
Loss attributable to ordinary shareholders (£000) | (843) | (1,554) | |||
Weighted average number of shares | 2,922,053,277 | 2,647,751,184 | |||
─────────── | ─────────── | ||||
Continued operations: | |||||
Basic and diluted EPS - loss (pence_ | (0.029) | (0.059) | |||
Total | - | - | |||
═════════ | ═════════ | ||||
The diluted loss per share is the same as the basic loss per share as the loss for the year has an antidilutive effect. | |||||
2014 | 2013 | ||||
Gross profit before depreciation, depletion and amortisation |
997 |
526 | |||
EPS on gross profit before depletion, depreciation and amortisation (pence) |
0.034 |
0.020 | |||
2014 | 2013 | ||||
£000 | £000 | ||||
Reconciliation from gross loss to gross profit before depletion, depreciation and amortisation | |||||
Gross (loss)/profit | (399) | (450) | |||
Add back: | |||||
Depletion, depreciation and amortisation | 1,396 | 976 | |||
─────── | ─────── | ||||
Gross profit before depreciation, depletion and amortisation |
997 |
526 | |||
═══════ | ═══════ | ||||
| |||||
9. Availability of Annual Report and Notice of AGM
The Company's AGM will be held at 11:30am on 22 June 2015 at Jeffrey's Henry LLP, 5-7 Cranwood Street, London EC1V 9EE. Notice of the AGM is being posted to shareholders today, together with a copy of the full report and accounts. A copy of the report and accounts will also be available to download later today from Nostra Terra's website at www.ntog.co.uk.