Nostra Terra Oil & Gas Company PLC Update on Hedges & Senior Lending Facility (3214I)
01 April 2020 - 5:00PM
UK Regulatory
TIDMNTOG
RNS Number : 3214I
Nostra Terra Oil & Gas Company PLC
01 April 2020
1 April 2020
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Update on Hedges & Senior Lending Facility
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 the following update
with regard to its hedging contracts and its Senior Lending
Facility with Washington Federal Bank ("WAFD").
Highlights:
-- Hedging contracts in place for 2020 to protect just over half
of revenue at US$55.15 to US$57.18 per barrel (WTI)
-- Redetermination of Senior Lending Facility completed on 30 January 2020
o Maturity extended for a further two years
o Company in compliance with all covenants
Hedging
On 26 September 2017, Nostra Terra announced that it had
secured, via its wholly owned subsidiary, New Horizons Energy 1
LLC, a hedging facility with BP Energy Company. The Company uses
hedging contracts in conjunction with its Senior Lending Facility
for price protection for future production and provide greater
access to capital.
In November and December 2019, as part of its regular practice,
management hedged a range of 1,500 to 1,800 barrels per month (just
over half the net production of the Company) at prices ranging from
$55.15 to $57.18 per barrel.
Summary of 2020 hedging contracts:
Pricing Date Quantity (barrels) Price (per barrel)
01/01/2020 - 31/01/2020 1,800 BBL / Monthly $57.18
--------------------- -------------------
01/02/2020 - 29/02/2020 1,800 BBL / Monthly $57.18
--------------------- -------------------
01/03/2020 - 31/03/2020 1,800 BBL / Monthly $57.18
--------------------- -------------------
01/04/2020 - 30/04/2020 1,800 BBL / Monthly $55.15
--------------------- -------------------
01/05/2020 - 31/05/2020 1,800 BBL / Monthly $55.15
--------------------- -------------------
01/06/2020 - 30/06/2020 1,800 BBL / Monthly $55.15
--------------------- -------------------
01/07/2020 - 31/07/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
01/08/2020 - 31/08/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
01/09/2020 - 30/09/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
01/10/2020 - 31/10/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
01/11/2020 - 30/11/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
01/12/2020 - 31/12/2020 1,500 BBL / Monthly $55.15
--------------------- -------------------
This hedging facility is currently providing an additional c.
$65,000/month above spot market pricing.
Senior Lending Facility
In January 2018, the Company entered into a US$5.0 million
Senior Lending Facility with WAFD. The borrowing base of the
facility is derived from oil production rates at the Company ' s
Pine Mills and Permian Basin assets. The most recent semi-annual
redetermination was last completed on 30 January 2020. Accordingly,
the current borrowing base and interest rate of the Senior Lending
Facility are US$1.78 million and 4.5% per annum respectively. The
maturity of the facility was extended by two years to 29 January
2022. Nostra Terra remains in compliance with all covenants.
Corporate Update
As previously announced, a root and branch review of the
business is being undertaken by the Company's new board and we look
forward to updating shareholders on the results of this in the near
future.
Matt Lofgran , Nostra Terra 's Chief Executive Officer,
said:
"In light of the recent pricing volatility in the oil markets,
we felt it prudent to update shareholders with steps we've taken to
secure future revenue for the Company. The Coronavirus, and general
uncertain geo-political climate, have caused huge downward pressure
on oil prices. During this time of turbulence, we're pleased to be
able to share with shareholders that just over half of our current
revenue stream for 2020 is protected, guaranteeing a price of $55
to $57 per barrel..
We also look forward to updating shareholders and the market on
progress the Board is making regarding other transformational plans
for 2020 in due course"
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
Shard Capital Stockbrokers (Joint
Broker)
Damon Heath / Erik Woolgar
Tel: +44 (0) 207 186 9952
Lionsgate Communications (Public
Relations)
Jonathan Charles Tel: +44 (0) 7791 892509
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END
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