Final Results

29 May 2015 07:00

RNS Number : 5765O

Nostra Terra Oil & Gas Company PLC

29 May 2015

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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