Last checked at 26 May 2022 07:00
26 May 2022
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Q1 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
· 6% increase in Q1 Company revenue ($810,699 Q1-22 vs $767,000 Q4-21)
· 14% decrease in Q1 average net daily production (102 bopd Q1-22 vs 118 bopd Q4-21) and an increase of 21% vs H1 2021 average (84 bopd)
· 25% increase in Q1 oil sales price per bbl ($88.16 Q1-22 vs $70.46 Q4-21)
· Fouke 2 well at Pine Mills put into production, exceeding expectations (NTOG 32.5% Working Interest) (post-period)
· Current Company production is approx. 140 bopd (net), an increase of 37% over Q1-22
· First Grant East well drilled and completed (post-period)
Production
During the first quarter net sales were 9,196 barrels (100% oil) resulting in $810,699 of revenue with the average realized sales price for the period being $88.16 per barrel. Production volumes were lower in Q1 22 vs Q4 21 due to seasonal storm related down time at the Pine Mills production facility in February. Current production is approx. 140 bopd (net), a 37% increase over Q1-22. This includes production from the Fouke 2 well at Pine Mills but nothing is yet included from the Grant East 1 well in West Texas,
Production (Sales) - Bbls | USD$ | |||
Gross (Monthly) | NTOG - Net (Monthly) | NTOG - Net (Daily) | NTOG Net Revenue | |
January 2022 | 6,234 | 3,605 | 116 | $270,286 |
February 2022 | 3,804 | 1,834 | 59 | $154,810 |
March 2022 | 7,132 | 3,757 | 121 | $385,603 |
Q1-22 TOTAL | 17,170 | 9,196 | 102 | $810,699 |
Operations
Pine Mills
Per RNS 16 May 2022, the Fouke 2 well at Pine Mills was put into production in May 2022 and sales have commenced (to be reflected in Q2-2022). The well was tested and flowed at a rate of 145 bopd over a 24-hour period with a 0% watercut and is currently on production at 140 bopd with a 0% water cut. The offset Fouke 1 current production rate has been increased to 110 bopd also with a 0% water cut with the objective of increasing this further as previously reported.
Additional facility improvements at Pine Mills (where the Company owns 100% WI) are being planned to improve both handling capacity and up-time.
Permian Basin
The Company acquired the Grant East Lease (100% WI) during the first quarter and drilled the Grant East 1 well in May 2022. The well is currently being completed and tested after it was stimulated.
Matt Lofgran, Nostra Terra's Chief Executive Officer, said:
"On the 5th of January we announced our 2022 corporate goals, one of which was to drill 3-4 new wells, using internally generated funds. It's May and we have already drilled 2 new wells this year, using these resources, and are confident that we can achieve this objective before year end as planned.
However, our primary focus remains on increasing cashflow, where we have been making great strides this year due to a combination of increased production volumes and higher average pricing. I look forward to updating everyone both on our progress towards achieving our goals and the results from the Grant East 1 in due course."
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.
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