oil and gas exploration and production company Nostra Terra on Monday announced a “significant expansion” of its senior loan facility, as well as a sharp increase in the value of its assets.
The AIM-listed company said the borrowing base on its senior facility increased by 43% to $3.35m (£2.55m), from $2.35m.
He said the interest rate remained unchanged at 4.4%.
The company’s proven reserves, meanwhile, had risen 10% since Sept. 1 to 2,148,090 gross barrels of oil, or 1,073,960 net barrels.
This led to a 37% increase in his future net income to $32.43 million, while his 10% net present value (NPV10) was 39% higher over the same period at $14.63. million dollars on a proven total basis.
“This year has started out very positively and we are pleased to have such an increase in asset value and facility borrowing base, using very conservative oil prices,” Chief Executive Matt said. Lofgran.
“This was also achieved without adding any of our new wells to the base.
“This expansion provides the company with the flexibility to execute its growth plans while accessing new opportunities.”
Lofgran said the company’s immediate goal is to expand its production base by drilling new wells in its existing operating areas.
“To that end, we are progressing well with our drilling plans in the Permian Basin where we expect to not only drill multiple wells this year, but also secure additional drill locations for future growth.
“Finally, at Fouke 2, which performed better than expected, a workover rig is on site to drill, complete and bring the well into production.
“I look forward to reporting the results of this activity in a future release.”
At 12:11 a.m. BST, shares of Nostra Terra Oil and Gas Company rose 1.15% to 0.49p.