Shares in Nostra Terra Oil & Gas (LSE:NTOG) enjoyed another boost today after the firm announced that it had achieved two milestones at its US-based Pine Mills oil field in February. The company’s share price was up 6.4pc, or 0.3p, to 4.3p following today’s news, which comes just under two weeks after it announced that February marked its maiden month of being cashflow positive.
In today’s announcement, Nostra said Pine Mills, where it is the 100pc owner, achieved estimated net revenues of $161,000 in February, a new monthly record. Average daily oil sold over the month also came in at a record 126bopd, a 30pc increase in average production on H1 2017 that was up from 109bopd in January. The business added that Pine Mills has been a ‘significant contributor’ towards it becoming cash flow positive at the plc level for the first time in February. Production at Pine Mills was boosted by workovers towards the end of February, which offset the adverse effects of weather-related preventive shut-ins for several days throughout the month due to heavy rain.
The site’s production looks set to hit another new production record in March as well, with average production so far this month coming in at 129bopd. Nostra added that it will continue to perform workovers on identified targets over the coming months to continue increasing production at Pine Mills. Its target production for the site is between 130 and 150bopd.
Matt Lofgran, chief executive officer at Nostra Terra, said: “We’re excited to see Pine Mills have a record month with revenue, and also reach a new record on daily production. This was achieved by reinvesting net income from the field into workovers.’
‘The lifting costs remain relatively constant, while production and revenue increase, resulting in an increase in net income from the field, which contributes further to remaining cashflow positive at the Plc level.’
Today’s announcement also follows the news that Nostra’s recently completed Twin Well in the Permian Basin produced an average of 52bopd in its first 12-day production period.
The well was put into production in early February after being drilled to a total depth of 3,200ft just four months ago. Nostra has two other drill-ready locations in the Permian Basin, and one is now being permitted. All of these developments mark the continuation of a strong start to the year for Nostra, which in January announced the availability of an impressive $5m senior lending facility with Washington Federal Bank.
Author: Daniel Flynn
The author of this piece does not own shares in the company mentioned.