Nostra Terra Oil and Gas Company PLC (AIM:NTOG, OTC:NTOGF) CEO Paul Welch talked with Proactive about the company’s latest developments, including its recently completed £500,000 fundraise. The funds will be used to complete the phase two workover program at Pine Mills, addressing well integrity issues and optimizing oil production. Welch highlighted that the company is currently profitable at existing oil prices and remains focused on maximizing the potential of Pine Mills before exploring new opportunities.
He also discussed the ongoing technical evaluation of the Fouke three location with their partner, with further updates expected. Welch noted that the water flood program, which restarted in September, has exceeded expectations, leading to increased oil production. As a result, part of the funds raised will go towards upgrading two pumping units to support higher output.
Looking ahead, Welch emphasized that Nostra Terra is focused on maintaining a solid, profitable base while evaluating further growth opportunities. He pointed out that the company has additional behind-pipe opportunities and untapped potential within Pine Mills, positioning it for continued success.
Proactive: Paul, thanks very much for speaking with us. For those that are new to the story, could you give us a quick introduction?
Paul Welch: Sure. Nostra Terra is an AIM-listed E&P company focused on the US. We have assets in East Texas and West Texas, onshore. At the moment, we are a very profitable company at current oil prices.
Proactive: You've announced a fundraise. What will the proceeds be used for, Paul?
Paul Welch: We raised £500,000 yesterday. The funds will be used to complete phase two of our workover program in the field. This was the final phase of the program. We raised money in the autumn for the first three wells, and we’ve now followed up with funds for the final two.
This second phase involves running new casing in wells that had leaks uphole. It is a bit more technically challenging and expensive than phase one, so we wanted to ensure a continuous program. We completed three wells, then paused to address general maintenance issues in the field. Now, we want to finish these final two while our team still has the expertise fresh in their minds.
The company is generating profits, and although oil prices have come down slightly, we decided to move forward with this now rather than wait six months. We have other projects planned for the year, so this was the right time to get these funds into the ground and start generating more production.
Proactive: Paul, it sounds like growth is the order of the day at Nostra Terra Oil and Gas. What else can investors expect to hear from you?
Paul Welch: Going forward, we have the Fouke three location, which we are discussing with our partner. We’ve already proposed it technically, and they are considering it now.
Investors should also look out for updates on our production. As part of phase one, we restarted a water flood program in the northern part of the field back in September. It took some time for pressure to build up and for the wells to respond, but they have performed better than expected.
Because of this, part of the funds we raised will be used to upgrade two pumping units in the field. We are getting higher volumes than we originally projected, and that has led to increased oil production. We want to make sure we have a strong, profitable base in place as we move forward.
Proactive: Finally, Paul, why should new and existing investors be excited about Nostra Terra Oil and Gas?
Paul Welch: Investors should be excited because we are profitable, and we now have a solid foundation. We understand the field’s potential and have been investing in the right areas. While not everything will work, most of our plans have delivered positive results so far.
If investors check our website, they will see presentations highlighting the untapped potential at Pine Mills. There are existing wells that have penetrated other horizons that have yet to be completed. We believe there are strong technical opportunities still available in the field.
Our goal is to maintain profitability and ensure investors see a return on their investment. We now have the comfort and confidence to continue investing in the company’s future growth.