Nostra Terra Oil and Gas Company PLC (AIM:NTOG, OTC:NTOGF) told investors it has renewed its $10 million senior lending facility with WAFD Bank, for three years until January 2028.
The company noted that its borrowing base for the facility is $4.25 million, with an interest rate of 7.50%. The facility will be reassessed twice yearly.
Nostra Terra said it expects to increase its borrowing to increase as its production, cash flows, and grow reserves.
The calculation of the borrowing base valuation estimated future net income at $22.71 million and net present value (NPV10) at $9.84 million.
"We're pleased to continue to deliver significant improvements in production and cash flows, which is reflected in a 3-year extension of our senior lending facility,” chief executive Paul Welch said.
“This gives us significant financial flexibility to continue to grow production with the headroom to increase our borrowing base with increasing cashflow and reserves."