30th Sep 2015 12:54
LONDON (Alliance News) - Nostra Terra Oil and Gas PLC Wednesday said it is on the look out for acquisitions in the US and Egypt after reporting a wider pretax loss in the first half of 2015.
The oil and gas company reported a GBP1.1 million pretax loss in the first six months of 2015, widening from the GBP362,000 loss a year earlier as revenue dipped to GBP393,000 from GBP414,000. The main cause of the wider loss was its gross loss widening to GBP1.1 million from GBP38,000 and higher administrative costs.
"Our focus remains in producing basins with conventional reservoirs, primarily using modern exploration and production technologies. Our existing production and reserves occur within the Mid-Continent US, however we are also finding intriguing opportunities outside the US which will provide further diversification going forward," it said.
"Post-period we announced plans to expand into a second focus area, Egypt and the surrounding region. Our plans are to acquire existing producing assets with further exploration potential. This approach allows us to acquire assets of lower risk, already generating revenues, where leverage can be applied to the acquisition," said Nostra.
"We are targeting existing producing assets with further upside through exploration. These assets can be acquired on advantageous terms and with careful application of leverage," it added.
Nostra Terra is producing from some its assets in the US, which include the White Buffalo prospect, the Chisholm Trail prospect, the High Plans prospect and some other assets in Southern Texas.
"Towards the end of 2014 and beginning of 2015, we doubled production putting the company on a much stronger footing," it said, however the company did not release its production figures for the period.
Nostra shares were down 4.8% to 0.100 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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