The Perfect Storm for Nostra Terra Oil and Gas?
“…Operations are right, our bases are right and the increase in the price of oil makes for a nice accelerator …”
Who could forget that day in April 2020 when US oil prices turned negative for the first time on record. Oil producers had ran out of space to store the oversupply of crude left by the coronavirus crisis and to use a pandemic cliché – what happened next was ‘unprecedented.’
Monday April 20th saw a historic market collapse with the price of US crude oil crashing from $18 a barrel to -$38 in a matter of hours.
Eight months on oil continues to claw its way back with the price of WTI hovering at around $45 US dollars, and that’s exquisite for oil and gas explorer Nostra Terra Oil and Gas which benefits from material cashflow enhancement.
Chief Executive Matt Lofgran says an increase in the WTI oil price not only has a significant impact on margins and cashflow, but positively impacts the value of Nostra’s reserves and its Senior Lending Facility as indicated in today’s RNS.
Here Matt talks to Sarah Lowther about the company’s focus to be cash flow positive, what a prediction of $65 oil would mean for Nostra in 2021 and how producing and selling oil from Pine Mills is imminent.
With news due in December time to look at Nostra Terra?
“…After initial results from that well we received multiple unsolicited offers to drill on our acreage…” Click here to find out more from the @TMSreach team
The author was remunerated but does not hold shares in the company