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Nostra Terra O&G Co - Completion of Acquisition and Interim Reporting

RNS Number : 6820Y
Nostra Terra Oil & Gas Company PLC
11 September 2020
 

11 September 2020

 

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

 

Completion of Acquisition and Interim Reporting

 

Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, is pleased to announce, further to its RNS on 2 September 2020, that it has completed the acquisition of a 100% Working Interest ("WI") in the Caballos Creek Oil Field, which is located in Atascosa County Texas.

 

Highlights

·    Acquisition completed in one month from asset identification

·    Financed 100% without dilution

·    Immediately accretive in terms of cashflow and production

·    30 bopd current production (gross), which increases Company-wide production by circa 25%

·    Additional acquisitions being assessed

 

Acquisition Completed

 

As previously announced on 2 September 2020, Nostra Terra entered into a contract to acquire 100% WI in the Caballos Creek oil field, a producing asset in Atascosa County Texas. The acquisition has now been completed and Nostra Terra has taken over operations of the field.

 

Nostra Terra will be performing work to further assess additional upside in the field. This will include: review of well files (particularly well interventions and production records), review of logs, depth structure mapping on key reservoirs, identifying locations for additional drilling, calculating net pay and volumes, and other associated activities. Following this, reservoir and production engineering aspects will be reviewed with the target of updating the reserves and economics and determining the extent and relative rank of the upside opportunities.

 

The acquisition of this asset is consistent with Nostra Terra continuing to execute on its stated plan. As previously described, the acquisition delivers further expansion and diversification of the portfolio, conventional producing assets, with relatively low operating costs.

 

Additional Acquisitions

 

Nostra Terra is seeking to make further accretive acquisitions at this time, targeting assets with proven reserves (primarily producing), with a view to increasing cash flow immediately. As demonstrated by this acquisition, the Company is able to evaluate assets and close transactions quickly, using debt and equity.

 

In this regard, the Board continues to evaluate and progress numerous opportunities of different scales, consistent with the experience of the Directors, both inside and outside the USA. The current oil price environment provides opportunities for acquisitions at attractive valuations, and licensing of assets with significant upside potential.

 

Interim Accounts Publication

In line with the guidance issued by AIM Regulation in an Inside AIM notification dated 9 June 2020, and the ongoing COVID-19 related disruption to processes, the Company is availing of the one month extension to the date by which it is required under AIM Rule 18 to publish its interim accounts for the six months ended 30 June 2020. Accordingly, the Company is required to publish its 2020 interim accounts by 31 October 2020.

 

Matt Lofgran, Nostra Terra 's Chief Executive Officer, said:

"Nostra Terra has acquired another asset that is immediately accretive, adding significant cash flow to the Company, achieved with non-dilutive financing. The Board is planning further growth in a similar fashion during the remainder of the year. We look forward to providing further updates in the future."

 

 

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

 

For further information, contact:

 

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

 

Email:

+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

Novum Securities Limited (Joint Broker)

Jon Belliss

 

Lionsgate Communications (Public Relations)

Jonathan Charles

Tel:

 

 

Tel:

+44 (0) 207 399 9425

 

 

+44 (0) 7791 892509

 

 

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Quick facts: Nostra Terra Oil and Gas Company plc

Price: 0.375

Market: AIM
Market Cap: £2.17 m
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