Nostra Terra expands lending facility, proven reserves

28th Mar 2022 12:47

(Sharecast News) - Oil and gas exploration and production company Nostra Terra announced a "significant expansion" its senior lending facility on Monday, as well as a large increase in its asset value.

The AIM-traded firm said the borrowing base on its senior facility had increased 43% to $3.35m (£2.55m), from $2.35m.

It said the interest rate remained unchanged at 4.4%.

The company's proven reserves, meanwhile, had expanded by 10% since 1 September to 2,148,090 gross barrels of oil, or 1,073,960 net barrels.

That led to a 37% rise in its future net income to $32.43m, while its 10% discounted net present value (NPV10) was 39% larger over the same period, at $14.63m on a total proved basis.

"This year has started very positively and we are pleased to have such a large increase in asset value and facility borrowing base, using very conservative oil prices," said chief executive officer Matt Lofgran.

"This was also achieved without adding any of our new wells to the base.

"This expansion provides the company with flexibility to execute its growth plans while accessing new opportunities."

Lofgran said the company's immediate focus was on expanding its production base through the drilling of new wells within its existing areas of operations.

"To this end, we're making good progress with our drilling plans in the Permian Basin where we are not only planning to drill multiple wells this year, but also securing additional drilling locations for further growth.

"Finally, at the Fouke 2, which came in better than expected, a workover rig is on location to perforate, complete and place the well on production.

"I look forward to reporting on the results of this activity in a subsequent release."

At 1211 BST, shares in Nostra Terra Oil and Gas Company were up 1.15% at 0.49p.