Half-yearly report

NOSTRA TERRA OIL & GAS COMPANY PLC CHAIRMAN'S STATEMENT Interim accounts for the six months to 30 June 2008 29 September 2008 As announced on 3 September 2008 the Company has stopped work on the opening of the Oktyabrskoe #24 well. Following the removal of the cement bridge plugs in March 2008, the well produced gas and minor amounts of oil and water. As early indications suggested, the oil content was gradually increasing and the well was fitted with a small pump and put on production. However the oil and water ratio remained constant at around 5%-10% of oil. Extensive work was then undertaken to isolate the oil bearing zones by re-working the bottom of the well and doubling the packers. Regrettably despite considerable effort the oil/water ratio has remained substantially unchanged, indicating that water is migrating into the perforated zones. Financial Overview Expenses incurred during the period relate to basic administration costs and as at the date of the balance sheet, the Company had net current assets of £227,000, with £124,000 held in cash. For the period a loss of £320,000 has been incurred, which on a weighted average equates to a basic and fully diluted loss of 0.084p pence per share; no dividend is being declared. The value of well #24 was written down by an amount of £98,000 to a residual value of £30,239. Review and Outlook The decision to cease activity on well #24 is clearly very disappointing and contrary to expectations following geophysical analysis and initial results earlier in the year. As a consequence the Board has begun the process of re- planning both the financial and operational objectives and is considering other strategic possibilities. The Ukraine operation continues to produce about 12-15 barrels of oil per day from Oktyabrskoe #1 which currently covers the majority of local operating expenditure. Despite the disappointing outcome from well #24 the Board is currently reviewing geological data with a view to re-opening well #10, which is in the same target zone and we are giving careful consideration to how to exploit the West Oktyabrskoe field licence. In each case however the Company will need to raise further working capital to meet the anticipated exploration and ongoing operating costs. We will report further to shareholders in due course. Sir Adrian Blennerhassett Chairman 29 September, 2008 Nostra Terra Oil & Gas Company Plc Income Statement for the six months ended 30 June 2008 Six months Five Eleven to 30 June months to months to 2008 30 June 31 December Unaudited 2007 2007 Unaudited audited £'000s £'000s £'000s Continuing operations Revenue 37 - 30 Cost of Sales (35) - (16) _______________________________ Gross Profit 2 - 14 Exploration costs amortised (98) - - Administrative expenses (195) (5) (362) _______________________________ Operating Loss (291) (5) (348) Finance costs (30) - (32) Finance income 1 2 5 Finance costs - - - _______________________________ Loss before tax (320) (3) (375) Income tax - - (7) charges _______________________________ Loss for the period from (320) (3) (382) continuing operations =============================== attributable to shareholders Loss per share From continuing operations: Pence Pence Pence Basic and diluted (0.084p) (0.004p) (0.199p) The Company's turnover and operating loss arise from continuing operations. There were no recognised gains or losses other than those recognised in the income statement above. Nostra Terra Oil & Gas Company Plc Balance Sheet as at 30 June 2008 As at 30 As at As at June 2008 30 June 31 December Unaudited 2007 2007 Unaudited Audited £'000s £'000s £'000s Assets Non-current assets Goodwill 4,211 - 4,211 Other intangibles 510 - 510 Property, plant and equipment 71 76 ____________________________ 4,792 - 4,797 ____________________________ Current assets Trade and other receivables 279 56 193 Cash and cash equivalents 124 96 153 ___________________________ 403 152 346 ___________________________ Current liabilities Trade and other 168 35 296 payables Tax payable 8 - 7 ___________________________ 176 35 303 ___________________________ Net current assets 227 117 43 ___________________________ Non current liabilities Other loans 1,480 - 1,480 _____________________________ Net assets 3,539 117 3,360 ============================= Equity Capital and reserves Share capital 424 63 346 Share premium account 3,927 167 3,506 Retained earnings (812) (113) (492) _______________________________ Total equity 3,539 117 3,360 =============================== Nostra Terra Oil & Gas Company Plc Cash Flow Statement For the six months ended 30 June 2008 Six Five Eleven months months months to 30 to 30 to 31 June June December 2008 2007 2007 Unaudited Unaudited audited Note £'000 £'000 £'000 Cash flows from 3 operating activities Cash generate/(consumed) (299) (57) 123 by operations Finance costs (30) - (32) _________________________________ Net cash from operating activities (329) (57) 91 _________________________________ Cash flows from investing activities Purchase of intangibles - - (510) Purchases of plant (100) - (76) and equipment Acquisition of - (203) subsidiaries Interest received 1 2 5 _______________________________ Net cash from (99) 2 (784) investing activities _______________________________ Cash flows from financing activities Proceeds on issue of 399 - 695 shares _______________________________ Net cash outflow (29) (55) 2 Cash and cash equivalents at the 153 151 151 beginning of the period ________________________________ Bank balances and 124 96 153 cash ================================ Consolidated statement of changes in equity As at As at As at 30 June 30 June 31 December 2008 2007 2007 £'000 £'000 £'000 As at beginning of 3,360 120 120 period Deficit for the period (320) (3) (382) Issue of share capital net of expenses 399 - 3,622 Conversion of loan notes 100 - - ___________________________________ As at end of period 3,539 117 3,360 =================================== Nostra Terra Oil & Gas Company Plc Notes to the Interim Report 1. Significant Accounting Policies These interim results have been prepared in accordance with International Financial Reporting Standards and on the historical cost basis, using generally recognised accounting principles and using the accounting policies which are consistent with those set out in the Company Annual Report and Accounts for the eleven months to 31 December 2007. This interim report for the six months to 30 June 2008, which complies with IAS34, was approved by the Board on 29 September 2008. 2. Loss per Share Six months Five Eleven to 30 June months to months to 2008 30 June 31 December Unaudited 2007 2007 Unaudited audited Loss per ordinary share Basic and diluted (0.084p) (0.004p) (0.199p) The loss per ordinary share is based on the Company's loss for the period of £320,000 (30 June 2007 - £3,000; 31 December 2007 £382,000) and basic weighted average number of shares in issue of 379,256,131 (30 June 2007- 62,750,000; 31 December 2007- 191,848,170). Given the Company's loss for the period, the diluted loss per share is the same as the basic loss per share. 3. Reconciliation of operating loss to net cash outflow from operating activities. Six months Five Eleven to 30 June months to months to 2008 30 June 31 December Unaudited 2007 2007 Unaudited audited £'000s £'000s £'000s Loss for the period (291) (5) (348) Adjustments for: Depreciation of 7 - - property, plant and equipment Amortisation of 98 - - exploration costs (Increase)/Decrease (86) (54) 246 in receivables (Decrease)/Increase (27) 2 225 in payables _____________________________________ Net cash from operating activities (299) (57) 123 ===================================== Nostra Terra Oil & Gas Company Plc Notes to the Interim Report 4. Called up Share Capital The issued share capital as at 31 December 2007, per the audited accounts was 346,424,522 Ordinary Shares of 0.1p each. The shares issued in the period are noted below. Date Number Issue Purpose of ordinary price shares pence of 0.1p 29 January 2008 20,000,000 0.5 Draw down on convertible facility 22 February 2008 2,000,000 0.1 Exercise of warrants 13 May 2008 53,333,332 0.75 Placing 30 May 2008 2,258,695 1.15 Settlement of fees 5. The unaudited results for period ended 30 June 2008 do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the eleven months ended 31 December 2007 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and which contain an unqualified audit report and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 6. Copies of this interim statement are available from the Company at its registered office at Finsgate, 5-7 Cranwood Street, London EC1V 9EE. The interim statement will also be available on the Company's website www.ntog.co.uk.

Companies

Nostra Terra Oil & Gas Co (NTOG)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today