30th Sep 2019 15:04
(Alliance News) - Nostra Terra Oil & Gas Co PLC said Monday its interim loss widened as costs rose and revenue declined on lower oil sales and prices.
For the six months to the end of June, Nostra Terra's pretax loss was USD712,000, widened from USD572,000 a year before as production rose to USD662,000 from USD565,000.
Revenue for the period declined by 16% to USD947,000 from USD1.1 million, as the average net oil sales dipped to 98 barrels per day from 101 barrels a year before, and the average oil price fell to USD57.39 per barrel from USD65.55.
During the period, Nostra Terra more than tripled its net proven and probable reserves to 2.43 million barrels of oil, with a net present value using a 9% discount rate of USD24 million.
This was from an overall increase in the company's existing producing assets, as well as the addition of resources from Mesquite in the Permian Basin, Texas.
"Moving forward we're looking at growth both in developing existing assets, such as Mesquite, and also acquiring new assets, which could prove to be transformative to the company. We're currently in various stages of due diligence and negotiations on acquiring additional producing US assets. These assets, if acquired, could provide an immediate positive impact on cashflow," said Chief Executive Officer Matt Lofgran.
Shares in Nostra Terra were up 0.7% at 1.36 pence on Monday in London.
By Dayo Laniyan; [email protected]
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