Nostra Terra Oil and Gas Company PLC (AIM:NTOG, OTC:NTOGF) told investors its ‘high netback’ operations are resilient to an extended low oil price environment, and it plans to actively consider new opportunities as they arise.
In today’s results statement, for 2024, a period in which the business has been reformed significantly, the small-cap oil firm highlighted that its Pine Mills and Fouke assets remain flow positive at oil prices above $25 per barrel.
The announcement coincides with softer crude pricing, driven by macroeconomics, including reduced demand amid global trade tensions, uncertainties over the ‘international economy’, and the impact of cut-price sales of Russian oil.
Nostra Terra, a AIM-quoted firm valued at just over £1 million, meanwhile, changed chief executive in May 2024 with Paul Welch taking the reins as Matt Lofgran exited.
The firm told investors it has "stuck to the knitting" during the period, divesting its non-core assets and focusing its resources on improving the performance of the Pine Mills acreage.
To this end, Pine Mills has seen a 40% improvement in production thanks to well workovers, and the company has also reduced costs by around 25%.
Five dormant wells were brought back online, and waterflood operations were restarted.
Total net oil production reached around 140 barrels of oil per day.
After this period of change, Nostra has its head up and is open to new opportunities.
“If the oil price continues to stay relatively low, or weakens further, the company expects that a wide range of producing assets in and around the areas where we currently operate will come to market as other companies come under pressure to divest,” Nostra Terra chair Stephen Staley said in his comments.
“We will actively consider these acquisition opportunities for commercial attractiveness and strategic fit, on a case-by-case basis.”
In terms of the financial results, Nostra Terra reported a $1.51 million loss for the year ended 31 December 2024, though it achieved operating and corporate level profitability in the fourth quarter.
As total production volumes reduced and prices declined, revenue was 28% lower at $2.04 million.
The company generated a $850,000 gross profit, before non-cash items.
Nostra Terra raised a total of £1.45 million across three equity placings during and after the reporting period.