Today’s interim results statement from Nostra Terra Oil and Gas Company PLC (AIM:NTOG, OTC:NTOGF) charts a period of change for the micro-cap firm.
At the top, Nostra Terra appointed Paul Welch as its new chief executive, replacing founder Matt Lofgran.
Nostra Terra, today, highlighted that Welch has brought to the company a relevant skill set, experience and a clear plan for organic growth.
The company has significantly trimmed general and admin expenses, whilst it also opted to focus on the Pine Mills asset and divest non-core assets in south and west Texas.
Welch intends to oversee improvements in Pine Mills' production and increase cash flow by year-end.
At the same time, the group’s capital structure was revamped with a reorganisation followed by a £450,000 equity raise in July.
Performance and financials
For the first half of 2024, Nostra Terra produced 12,593 barrels of oil, down from 21,265 in the same period a year before.
The company reported $938,000 of revenue for the half versus $1.42 million in 2023.
It marked a $230,000 profit before non-cash items (depletion, depreciation, amortisation and interest), whilst reporting a $792,000 loss for the half – compared to a $48,000 profit a year ago.
Besides the year-over-year drop in production, Nostra Terra also noted "generally lower oil prices than in 2023".
Looking ahead to opportunities in the asset portfolio, Nostra Terra highlighted that a review of existing 3D seismic data over the Pine Mills area yielded potential new locations that could host wells highly attractive performance characteristics.
“These new locations represent considerable, relatively low-risk upside to our existing resource base in the area,” the company said.
It added: “Cost reduction initiatives, are expected to show an impact on the 2024 full-year results.
“The Pine Mills work involves enhancing or reinstating production from a number of existing wells in a cost-effective manner.
“These investments are expected to have short payback times and are also likely to have a positive impact on the results in the second half of the current financial year.
“This work is now well underway, and we hope to be able to announce initial results in the coming weeks.”