Nostra Terra O&G Co

Nostra Terra Achieves Positive Cashflow for Feb 18

RNS Number : 9884F
Nostra Terra Oil & Gas Company PLC
27 February 2018
 

27 February 2018

 

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

 

Nostra Terra Achieves Positive Cashflow for February

 

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce a significant milestone in its development. During the month of February 2018, the Company was cashflow positive at the Plc level.

 

Following operational improvements made at Pine Mills over the past year, increased production from the Twin Well and the improving oil price environment, Nostra Terra surpassed breakeven during February 2018 resulting in its maiden month of being cashflow positive at the corporate level (cashflow positive being revenue less field operating costs less overhead and interest expense). 

 

Nostra Terra expects to remain cashflow positive in the coming months although much depends on the oil price. The Company's aim is to achieve annual profitability, though there is no guarantee of this outcome at this stage.  

 

In addition, in January 2018, the Company announced the availability of an initial borrowing base of $1,200,000, which is available for immediate use, from its $5,000,000 Senior Lending Facility with a 4.75% interest rate, which, together with cash raised from recent warrant exercises, means that Nostra Terra is well funded to cover its future drilling campaign from existing resources/banking arrangements. The Company will continue with its strategy of developing its portfolio, to increase oil production and free cash flow generation, while actively seeking to acquire assets to add value to the business.

 

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

 

"February has been an intensely rewarding month for Nostra Terra. Not only has the Twin Well surpassed our expectations, but we've also hit the major milestone of achieving our first month of being cashflow positive as a company as a whole.

 

Since we started our turnaround strategy in 2016 this has always been our goal. To have reached this target so early in 2018 is extremely encouraging and I would like to thank our operations team for all their efforts in the field. We now have a very strong foundation upon which to build the company, as we introduce new assets and grow oil production."

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

For further information, visit www.ntog.co.uk or contact:

 

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

 

Tel:

+1 480 993 8933

Strand Hanson Limited

(Nominated & Financial Adviser and Joint Broker)

Rory Murphy / Ritchie Balmer / Jack Botros

 

Tel:

+44 (0) 20 7409 3494

Smaller  Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate

Tel:

+44 (0) 20 3651 2910




 

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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