News blog

Nostra Terra Oil and Gas Company

• BY: Andrew Hore |
• POSTED: 25/02/2013 |

US-focused oil and gas producer Nostra Terra Oil and Gas Company covered its costs before interest charges in January.

This reflects increasing production from additional wells in the Chisholm Trail. The anticipated revenues for January were $110,000, net of royalties, which was more than double the figure in November. This was more than enough to cover operating overheads.

However, there is no indication from the announcement whether or not the monthly interest charges will be covered. This seems unlikely. The latest increase in production will not be enough to cover the interim pre-tax loss of £356,000.

However, the potential for further increase in production is more important. Nostra Terra is one-third of the way through its drilling programme and assuming all or most of these wells are successful, production could be much higher in a year.

Nostra Terra has minority interests in the wells but its share of production is nearing its target of 125 barrels of oil equivalent per day and the next target is to double that figure.

At 0.55p a share, Nostra Terra is valued at £13.5m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFFebruary2013_41.pdf