9th Apr 2020 06:53
(Alliance News) - Nostra Terra Oil & Gas Co PLC on Wednesday said it raised GBP318,055 in a share placing to strengthen its finances during volatile market conditions.
The oil & gas exploration and production company placed 107.2 million shares at 0.25 pence each.
On Wednesday, its shares closed 37% lower at 0.30p each.
Chief Executive Officer Matt Lofgran said: "Considering the macroeconomic challenges we're pleased to raise additional equity to help Nostra Terra to progress in this adverse market. We look forward to building on the foundation in place throughout the year."
Nostra also added that "further investment" in its portfolio will be limited, due to the weaker oil price
"In the last month, following the significant drop in oil prices and the severe economic downturn caused by the spread of the coronavirus, the Board began prioritising certain, highly targeted work necessary to ensure maintenance of low cost production and the safety and regulatory requirements of the leases, subject to satisfying applicable regulations with regard to operating in the current coronavirus environment," Nostra said.
The company added that it has received approaches over potential farm-ins at its Pine Mills asset, in Texas.
"It could also open up and de-risk multiple additional well locations in the Pine Mills acreage to further drilling," Nostra said.
CEO Lofgran has agreed to a 60% salary cut, until the company completes a next "sizeable fundraise".
It also added that by April 16, it will post a circular convening a general meeting.
In March, Nostra said it received a requisition from investors Eridge Capital Ltd to convene a general meeting.
By Eric Cunha; [email protected]
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