Nostra Terra Oil and Gas (AIM: NTOG), the oil & gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce its final results for the year ended 31 December 2018.
Highlights during the period:
- Revenue for the period increased 56% to $2,267,000 (2017: $1,453,000)
- Production for the period increased 22% at 37,384 barrels of oil equivalent (boe) (2017: 30,703 boe)
- Gross profit before exploration, impairment, depreciation, depletion and amortisation was up by 423% to $942,000 (2017: $180,000)
- Two new vertical wells drilled and put into production in the Permian Basin
– First well beat expectations reaching 100% payback in year one
– 2nd well met expectations - Successful workovers at Pine Mills to increase production
- Proven Reserves (1P) increased by 18% to 746,030 boe (2017: 646,280 boe) with Proven & Probable Reserves (2P) of 2429,660 boe
- 276% increase in net 2P (Proved & Probable) reserves to 2,429,660 barrels of oil, up from 646,280 barrels of oil (1P at Pine Mills and Permian Basin from 2017)
- Total Proved & Probable Future Net Income (“FNI”) estimated at $58.65 million
- Net Present Value at 9% discount (“NPV9”) estimated at $23.93 million
- Mesquite Asset acquisition in the Permian Basin
– Increased Permian Basin acreage by 308% - $5,000,000 Senior Lending Facility, with 4.75% interest rate with initial borrowing base of $1,200,000 increased to $1,950,000 at 31 December 2018, with a variable rate of the greater of 4.25% and WSS Rate plus 25 basis points
- Net Proved reserves of 764,030 barrels of oil (1P)
– Increase primarily due to drilling and development of existing Permian Basin assets during H1 2018
– Total Proved FNI estimated at $14.96 million
– Total Proved NPV9 estimated at $7.54 million - Net Probable reserves of approximately 1,665,630 barrels of oil
– Increase attributable entirely to Mesquite
– Total Probable FNI estimated at $43.69 million
– Total Probable NPV9 estimated at $16.39 million - Cost of Sales as a percent of revenue decreased by 15%
- Lifting costs per barrel decreased to $32.06 per barrel (2017: $38.72 per barrel)
Post year end highlights
- Twin well (Permian Basin) reached 100% payback in year one
- Engineered Economics for Mesquite
- Additional leasing expanded footprint at Mesquite
- East Ghazalat, hearing held in London, in May, with conclusion anticipated during the second half of 2019
- Placing raised additional £1,150,000 cornerstoned by institutional investor
- Initiation of Research by Shard Capital Partners LLP
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