The rejuvenation of Nostra Terra Oil and Gas has only just begun
“…We are working on some new opportunities for Nostra Terra in 2021…”
There are plenty of takeaways from February’s concise operations update from Nostra Terra Oil and Gas. The company is confident it will remain cash flow positive in 2021 as it identifies portfolio-enhancing acquisitions, and it can now handle an oil price sub $45 which is a fantastic achievement from all.
In the operations update today for the second half of 2020, H2-20 net production and net revenue increased by 42% over H1-20, the cashflow positive milestone was achieved in December and the company anticipate they will remain cashflow positive through 2021. The new well at Pine Mills continues to surpass management’s expectations also.
“With a strong foundation underneath us we’re anticipating a year of strong growth for Nostra Terra. The Board remains focused and excited about delivering on its objectives throughout the year” says CEO Matt Lofgran.
The Texas-focused oil and gas exploration company achieved cash flow positive status during a downturn in the price of oil and as WTI rises in tandem with the global Covid-19 vaccine rollout, the financial health of NTOG mirrors the optimism about the fight against the disease and of equal importance the strength of its portfolio.
More oil is flowing in the company’s pipelines with the new well at the Pine Mills oil field producing 100 barrels a day. Lofgran says even if there is no new production this year, the company’s balance sheet can withstand oil prices at sub $45 a barrel; though he’s hopeful those days are behind the industry.
Lofgran is tight lipped about buying opportunities that have arisen, but he reveals he’s in weekly discussions with loyal, legacy lenders.
Matt tells Sarah Lowther why he’s in constant dialogue with the bank, and that investor dividends are a consideration while the company continues to grow as others implode.
The author was remunerated but does not hold shares in the company