Nostra Terra Oil & Gas is looking forward to the tricky oil price environment providing it with juicy acquisition opportunities.
The USA and Egypt-focused oil and gas explorer and producer was in optimistic mood, as well it might be after reporting third quarter production that more than tripled from a year earlier.
Production of 24,492 barrels of oil equivalent (boe), net of royalties, was up 232% from the corresponding quarter of last year, despite two of the larger contributing wells in the USA being temporarily offline in August and September. Repairs have been made and production has returned to previous levels at the two wells.
The large increase in production and revenues is attributed to the acquisition of a producing asset in Egypt, from which Nostra sold 24,492 barrels of oil equivalent in the third quarter, bringing in around US$530,921 of revenue. This represents an increase of 182% in production and 66% in revenue over the previous quarter alone, the company revealed.
Quarterly revenues, net of royalties, clocked in at US$530,921 for the group’s portfolio of assets. The average realised price for the third quarter was US$47.20 a barrel.
Acknowledging the cyclical nature of the oil & gas business, Nostra Terra reiterated its belief that now is a great time to acquire assets, with the focus on acquisitions that will contribute to cash flow.
“We’re very pleased to show a significant increase in both production and revenues for the quarter during a time in the industry where many companies are struggling. We feel it’s a great time to grow our asset base and the acquisition in Egypt represents an excellent second focus area for the company,” said Matt Lofgran, chief executive officer of Nostra Terra.
“We will continue to seek other opportunities similar to East Ghazalat, both in the USA and beyond while remaining focused on cash flow,” he added.
Shares in Nostra Terra were off 1%, roughly in line with the market, at 0.094p in the first half hour of trading.
By John Harrington
Source: Proactive Investors
LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]
LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]
LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]