1st Apr 2020 11:01
(Alliance News) - Nostra Terra Oil & Gas Co PLC on Wednesday said over half of 2020 revenue is protected by hedging.
Shares were 38% higher on Wednesday morning in London at 0.55 pence each.
Permian Basin-focused Nostra Terra secured a hedging facility with BP Energy Co in September 2017 to protect it against price fluctuations.
In November and December last year, Nostra Terra hedged between 1,500 barrels and 1,800 barrels per month at WTI prices between USD55.15 to USD57.18 per barrel.
WTI was quoted at USD20.24 per barrel on Wednesday morning, with oil prices crashing due to the Covid-19 outbreak.
Chief Executive Matt Lofgran said: "In light of the recent pricing volatility in the oil markets, we felt it prudent to update shareholders with steps we've taken to secure future revenue for the company.
"The coronavirus, and general uncertain geopolitical climate, have caused huge downward pressure on oil prices. During this time of turbulence, we're pleased to be able to share with shareholders that just over half of our current revenue stream for 2020 is protected, guaranteeing a price of USD55 to USD57 per barrel."
"We also look forward to updating shareholders and the market on the progress the board is making regarding other transformational plans for 2020 in due course," he added.
By George Collard; [email protected]
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