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Nostra Terra online presentation: Matt Lofgran talks investors through Mesquite’s massive potential (NTOG)

Last night saw Matt Lofgran, CEO of Nostra Terra Oil & Gas (LSE:NTOG) update shareholders and investors on the firm’s progress in an exclusive online presentation and Q&A session hosted by ValueTheMarkets.com.

The event, recorded and viewable below, saw Lofgran reiterate the opportunity offered by the business through its experienced management team and portfolio of assets spanning the US and Egypt. He also reminded investors of the industry-wide excitement around Texas’s Permian Basin, where Nostra has been growing its position steadily for some time. In particular, Lofgran highlighted the potential of horizontal drilling and stacked formations in the region.

‘Historically, most of the wells in the Permian Basin have been drilled vertically. This gives you, say, 60ft of pay and that is it,’ he said at one point. ‘However, if you were to take that well bore horizontally into the formations for, say, 6,000ft, then you are looking at 6,000ft of pay rather than 60ft.

‘In addition, we have the multiplier effect. There are additional formations above and below that offer this same prospectivity. Multiple formations can be accessed from one well site. That is why so many other companies and we are attracted to the Permian Basin.’

The presentation also gave investors a chance to learn more about Nostra’s Mesquite asset in the Permian Basin, which it acquired last year. Lofgran described the site as a ‘pocket that has not been drilled yet’, adding:

‘We know that oil is there. There is no question that oil is on all sides of you. We also know its moveable. The question now comes down to economics. We can drill vertical wells, but we know that drilling horizontally offers better economics.’

He went on to highlight the attractive economics recently published in the first iteration of a field development plan for Mesquite. These will support the firm, which recently received significant backing from well-known institutional investor Miton Group, as it continues work to secure a farm-in partner to support Mesquite’s development.

‘Looking at per well economics, using $60 oil you are looking at $2m net cash flow from the first year from the first well. That’s pretty significant when you are looking at a company with our last stated revenue of c.$1m for the year,’ said Lofgran. ‘We are trebling our revenue just off of the first well, and we have identified eight locations on our current acreage that we plan to expand further.’

In the below video, Lofgran also discusses Nostra’s funding facilities with Washington Federal Bank and hedging facility with BP as well as telling listeners plans for future progress.

Valuethemarkets.com and Dynamic Investor Relations Ltd are not responsible for the content or accuracy of this article.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

  • Daniel Flynn does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
  • Daniel Flynn has not been paid to produce this piece by the company or companies mentioned above.
  • Stuart Langelaan currently holds a position or positions in the stock(s) and/or financial instrument(s) mentioned in the piece.
  • Stuart Langelaan has not been paid to produce this piece by the company or companies mentioned above.
  • Dynamic Investor Relations Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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