Nostra Terra Oil & Gas Company PLC $5m Senior Lending Facility & Operational Update (3843D)
31 January 2018 - 6:00PM
UK Regulatory
TIDMNTOG
RNS Number : 3843D
Nostra Terra Oil & Gas Company PLC
31 January 2018
31 January 2018
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Completion of $5m Senior Lending Facility & Operational
Update
Nostra Terra (AIM:NTOG), the oil and gas exploration and
production company with a portfolio of assets in the USA and Egypt,
is pleased to announce completion of its new Senior Lending
Facility ("the Facility") with Washington Federal Bank.
As previously announced, the Facility size is US$5 million with
an initial borrowing base of US$1.2 million, which is available for
immediate use (the "Borrowing Base"). The Borrowing Base is based
on oil production at Pine Mills, using a conservative oil price of
US$36.50 per barrel or less for the next 6 years. The size of the
Facility and Borrowing Base will be assessed at least twice a year
and Nostra Terra's board (the "Board") expects both to grow as the
Company increases its Proven 1P reserves and oil production.
With oil prices improving, Nostra Terra also has the opportunity
to increase the size of the Facility and Borrowing Base by using
the BP Energy Company Hedging Facility (as announced on 26
September 2017 and 19 October 2017). Nostra Terra has not yet
hedged any of its production and further updates will be provided
as and when appropriate.
Operational Update
Following the recent warrant exercises and completion of the
Facility, Nostra Terra is well funded to accelerate its planned
drill programme across its Permian Basin assets whilst keeping
dilution for shareholders to a minimum. Nostra Terra's goal is to
become cash flow positive at the corporate level through increasing
oil production. The Company currently has 24 drill-ready locations
to help achieve this target.
The completion process at Nostra Terra's recently drilled Twin
Well continues to proceed according to plan and the Company expects
it will come in slightly under budget. The Company will provide an
update on progress in the coming days.
Once commercial flow testing of the Twin Well is finished, the
Company expects to announce the next phase of its drill programme.
Nostra Terra is currently working on the permitting process for
three new wells across its Permian Basin acreage. Once the permits
are received, the Company intends to commence drilling operations
at its next well as soon as it can.
Matt Lofgran, Chief Executive Officer of Nostra Terra,
commented:
"Completion of the new Senior Lending Facility is a watershed
moment for Nostra Terra. Since we embarked on our new strategy two
years ago we have been constrained by a lack of available finance.
Previously we were able to grow and make shrewd transactions with
limited capital. However, now that we have received such strong
backing from Washington Federal Bank and our warrant holders, we
are well capitalised to realise our ambition of becoming cash flow
positive at the Plc level. Oil prices are at three-year highs, our
assets are ready to develop and we have capital to continue
drilling. With the Twin Well due to be put into production soon,
this is an exciting time to be involved with the Company."
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 Tel: +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
Smaller Company Capital
Limited (Joint Broker)
Rupert Williams / Jeremy
Woodgate Tel: +44 (0) 20 3651 2910
This information is provided by RNS
The company news service from the London Stock Exchange
END
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