Last checked at 1 Sep 2022 07:00
1 September 2022
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
Q2 Production and Operations Update
Superb Results - 33% increase in Revenue, 22% increase in Production
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
· 33% increase in Q2 Company revenue ($1,141,739 Q2-22 vs $810,699 Q1-22)
· Highest quarterly revenue in Company history
· 22% increase in Q2 average net daily production (125 bopd Q2-22 vs 102 bopd Q1-22)
· 7% increase in Q2 oil sales price per bbl ($98.28 Q2-22 vs $94.43 Q1-22)
Production
During the second quarter net sales were 11,260 barrels (100% oil) resulting in $1,141,739 of revenue with the average realised sales price for the period being $104.97 per barrel. Production volumes were higher in Q2 22 vs Q1 22 due primarily to the addition of the Fouke #2 well in May.
Production (Sales) - Bbls | $USD | |||
Gross (Monthly) | NTOG - Net (Monthly) | NTOG - Net (Daily) | NTOG Net Revenue | |
April 2022 | 6,726 | 3,510 | 117 | $313,382 |
May 2022 | 9,960 | 4,116 | 133 | $437,490 |
June 2022 | 9,108 | 3,634 | 117 | $390,867 |
Q2-22 TOTAL | 25,795 | 11,260 | 124 | $1,141,739 |
Sales figures are based on an accruals basis and may vary slightly from actuals.
The Company continues to produce strong and increasing cashflow.
Operations
Pine Mills
As previously reported, production facility improvement work at the Pine Mills field (where the Company owns 100% WI) which were planned to enhance both the handling capacity and up-time along with a five well workover program has commenced. Workovers on the first two production wells are complete and now work on the water handling and disposal system facility is underway. This facility work is anticipated to take several weeks and once complete will increase the treating capacity of the facility enabling the existing pumping units to increase their flow rates. It is anticipated that the increased fluid rates will result in increased oil production across the field. After the disposal work is finished the three additional well workovers will be completed.
Permian Basin
Technical work on the results of the Grant East #1 well continues. Integrating the Grant East #1 results into a larger regional context has uncovered attractive opportunities in other parts of the lease that were not initially anticipated. Planning and permitting for a second well within the lease are ongoing and it is now expected that one of these new opportunities will be drilled prior to year-end.
Matt Lofgran, Nostra Terra's Chief Executive Officer, said:
"Nostra Terra achieved the highest quarterly revenue in Company history, generating a 33% increase in revenue when compared to the previous quarter through a combination of increased production and increased commodity prices. As a result, we're in a very strong position, with a profitable portfolio of existing opportunities, such as the Fouke 2, where our investment reached payback in less than 3 months, that can be developed from internal resources. We also have the ability to fund future growth while retiring past debt obligations. This allows us to pursue a mix of exciting opportunities, including development and exploration, to expand our portfolio. It's our expectation that the results of the workover and facility improvement activity at Pine Mills will deliver a further increase in production from our existing wells while providing the treating capacity necessary for the new opportunities we are developing resulting from the Fouke area successes.
We've delivered two sequential quarters of Company revenue increases, while reducing leverage and running and active drilling campaign. It's been an excellent period for the Company, and I am very optimistic about the future. I look forward to reporting on the results of our current activities in a future release."
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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