22nd Apr 2014 12:24
LONDON (Alliance News) - Nostra Terra Oil and Gas Company PLC Tuesday said that annual production increased more than expected in 2013, and said it expects to increase production and revenues further in the year ahead.
The AIM-quoted oil and gas producer with prospects in the US, said that annual production increased 184% in 2013, exceeding its guidance for a 150% increase. It said that net production in February averaged at 66 barrels of oil equivalent per day, net of royalties, and it expects oil production to increase to 150 barrels of oil equivalent per day by the summer.
"We remain cash flow positive on an operational basis with free cash flow being reinvested in the drilling of new wells. New wells continue to be planned and proposed by multiple operators in the Chisholm Trail Prospect," the company said in a statement.
Nostra Terra said that during the first quarter, it was elected to participate in three additional wells in the Hunton Limestone formation, where it has experienced repeated drilling success. It said it has a material interest in two of the wells.
The company also said that a drilling location within the High Plains Prospect has been identified and leasing is nearly complete.
"The partnership anticipates that a rig will move in to drill in the third quarter of 2014. If successful, the test well will be followed by an on-going leasing program within the 43,000 acre area of mutual interest," the company said in a statement.
During the quarter, the company secured a USD25 million, non-dilutive, credit facility with Texas Capital Bank, which it said it will use in addition to free cash flow, to grow production and revenues at a quicker pace.
Nostra Terra shares were up 0.1% at 0.290 pence per share Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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