Nostra Terra O&G Co - Acquisition of Producing Assets & Issue of Shares
("Nostra Terra" or the "Company")
Acquisition of Producing Assets, Issue of Shares and TVR
Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in
· Independently assessed PV10
o Proved reserves as at
o Remaining economic life of 16 - 32 years per well
· Shallow, conventional, oil producing assets
· 745 acres, all held-by-production ("HBP")
· 100% working interest ("WI"), with NTOG assuming operatorship
· 30 bopd current production (gross), which increases Company-wide production by circa 25%
· Financed entirely without dilution
· Estimated payback less than 2 years
Further details on the Acquisition
The primary assets are shallow, vertical oil wells producing 30 bopd gross (22 bopd net of royalties) with further development potential. Proven reserves (producing and non-producing) are PV10
The acquisition represents an approximately 25% increase in total Company daily production, from year end 2019, financed entirely without dilution. As at
Nostra Terra has entered into an agreement to acquire 100% WI in the assets from
Nostra Terra has arranged non-dilutive financing from an unconnected third-party in the amount of
Issue of new Ordinary Shares to Consultants and Directors
3,846,154 new ordinary shares of
As previously announced on
The cash fees currently being deferred for all Board members will continue to be deferred for the time being to allow the financial position of the Company to continue to improve.
Messrs Staley, Lofgran, and Stafford are interested in 8,166,667, 50,705,463 and 2,500,000 ordinary shares respectively, representing 2.15%, 13.36% and 0.66% of the Company's enlarged issued share capital.
This demonstrates the start of our stated growth plan, continued the alignment of Directors and shareholders, and commitment of the Board to the future success of Nostra Terra.
Admission to Trading on AIM and Total Voting Rights
Application will be made for the admission of the Consultant Shares and the Director
Following Admission, the Company will have 379,520,534 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 379,520,534 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the
"The first half of 2020 was relatively quiet from an acquisition perspective as the Board took a very measured approach to assessing the turbulent economy, board changes and oil price environment. Considerable effort has taken place since to identify assets that make money in a low oil price environment, and to which we could add to our portfolio on good terms while being cautious about dilution.
We're very excited about the acquisition of these assets. We're acquiring low risk, producing assets, with average life over 20 years, immediately adding net cash flow to the Company, all with non-dilutive financing."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
For further information, contact:
+1 480 993 8933
(Nominated & Financial Adviser and Joint Broker)
+44 (0) 20 7409 3494
+44 (0) 207 399 9425
+44 (0) 7791 892509
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Quick facts: Nostra Terra Oil and Gas Company plc
Market Cap: £2.17 m
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