Last month, I wrote about the potential upside of Nostra Terra Oil & Gas (LON:NTOG). Since then, the share price hasn’t moved much, but the company has released a flurry of updates that I think reaffirms the thought that Nostra Terra Oil & Gas is definitely a company to look at. Let’s go through the updates one by one:
Director’s Dealing and Shareholding on 26 March 2018 – nothing to really shout about here; one of the directors wanted to transfer his shareholding to an ISA and the release was about the selling/buying of shares into his share account.
Permian Basin – New Permit and Drilling on 26 March 2018 – the company received approval for one of the wells that was in the ‘permitting’ process, and indicated that the intention was to begin drilling at the well in early May. The anticipated return is 2:1 at $40/barrel of oil, with an estimated 35,000 barrels expected to be recovered from the well. The company announced that 2 more wells that were in the middle of the ‘permitting’ process as well.
Twin Well Production Update & New Drilling Permits on 9 April 2018 – company reported that the current Twin Well produced 58 barrels of oil daily for the past 30 days and also announced that the 2 additional drill sites that were in the ‘permitting process’ were now approved.
Permian Basin – Back-to-Back Wells on 12 April 2018 – the company announced that as a result of the success of the Twin Well, a decision was made to being work on the 2 wells that were approved in the previous update. This work will be done back to back.
Final exercise of warrants on 19 April 2018 – the company announced today that the final set of outstanding warrants have either been exercised or have expired. This means that the possibility for further dilution at this time is now gone.
The above updates I think are all very positive. The company is confident enough to continue constructing new wells ahead of schedule, and with no additional funding required. This, coupled with the fact that the current oil price continues to climb,makes Nostra Terra Oil & Gas an attractive proposition. The company’s directors have already gone on record saying that the company can make profits on oil at $30 a barrel. Today, oil hit $74 a barrel; a price not seen for the past 3 years. It will be very interesting to hear what sort of increased revenues has been generated over the past few months as a result. Any significant increase in revenue could result in an increase in the share price, given that the company’s current market capitalization of around £5.5 million
As always though, please do your own research before buying/selling this share; the opinions above are only my personal views and should not be considered as advice.
