Nostra Terra Oil & Gas Company PLC Hedging Facility Update (9966T)
19 October 2017 - 5:00PM
UK Regulatory
TIDMNTOG
RNS Number : 9966T
Nostra Terra Oil & Gas Company PLC
19 October 2017
19 October 2017
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Hedging Facility Update
Nostra Terra (AIM:NTOG), the oil and gas exploration and
production company with a portfolio of assets in the USA and Egypt,
announces the following:
As previously announced on 26 September 2017, Nostra Terra has
secured a hedging facility with BP Energy Company ("the hedging
facility"). In response to queries from investors, the board of the
Company (the "Board") can confirm that it intends to utilise the
hedging facility primarily in conjunction with lending facilities
to enable increased funds to be made available to the Company.
In addition, as Nostra Terra has been able to demonstrate a
track record of stable and secure oil production, BP Energy Company
has waived its margin requirement. As a result, the Company's
working capital position can be improved because the Company will
not be required to hold cash on margin.
The hedging facility includes an inter creditor agreement to
work seamlessly with Nostra Terra's existing $25,000,000 senior
lending facility with Texas Capital Bank ("the TCB Facility"). This
could also be applied to any other potential new senior lending
facility. Nostra Terra has gone to great lengths over recent years
to maintain the TCB Facility in good standing, with this goal in
mind.
However, having now secured the hedging facility with BP Energy
Company, the Board believes the Company is in a better funding
position than it anticipated to be able to deliver its growth
strategy. Nostra Terra is currently in discussions with three
banks, including Texas Capital Bank, to ensure it has the best
facility in place not just for immediate growth plans but also
those over the coming years.
Nostra Terra expects to provide an update concerning this in the
coming weeks.
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 +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser and
Joint Broker) +44 (0) 20 7409 3494
Rory Murphy / Ritchie Balmer / Jack
Botros
Smaller Company Capital Limited (Joint
Broker) +44 (0) 20 3651 2910
Rupert Williams / Jeremy Woodgate
This information is provided by RNS
The company news service from the London Stock Exchange
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