1st May 2015 09:02
LONDON (Alliance News) - Nostra Terra Oil & Gas Company PLC Friday said production and revenue continued to rise on the year in the first quarter of 2015, as growing production from its interests in the US offset the lower oil price, although it said it was waiting for a more stable oil price before committing to a drilling programme at the White Buffalo prospect in Wyoming.
The company, which has interests in Wyoming, Oklahoma and South Texas, said total production net to its working interests, net of royalties, was 11,068 barrels of oil equivalent in the first quarter of 2015, up 79% on the year, bringing in revenue of USD446,956.
Still, production was down from 12,376 barrels of oil equivalent in the fourth quarter of 2014, and revenue was down from USD707,978.
"Our current revenue from producing properties continues to exceed our overheads, even in the current oil price environment. That said we are selective of when and where free cash flow is invested and will continue to be disciplined in maintaining already very low corporate overhead," the company said.
It said that while many oil companies had been cutting capital drilling budgets significantly while they wait to what will happen with the oil price, Nostra Terra sees it as an opportunity. Earlier this week, it bought a 1% working interest in a prospect covering about 20,000 acres in South Texas.
"We are particularly interested in assets that are already producing, or are drilling, or drill-ready immediately. We anticipate that many more opportunities will become available to us along the Eagle Ford trend in South Texas, where further growth is targeted," it said.
Still, the oil price is having an impact on the company.
"While the oil price appears to be recovering, we are looking for a more stable oil price before committing to a drilling program at White Buffalo, preferring to grow our cash position further by investing in the type of low-risk prospects that we enjoyed along Chisholm Trail. By doing this we can build our cash position with the aim of maintaining more of our interest of White Buffalo," Chief Executive Matt Lofgran said.
"Despite the lower oil price, environment portfolio investments made in the last few years continue to generate cash which we are using to help fund growth, both in production and exploration. Our recent acquisition of interest in South Texas, the largest acreage in our portfolio, offers much more opportunity to add production and cash," he added.
Nostra Terra shares were down 4.5% at 0.153 pence in London Friday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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