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NOSTRA TERRA OIL AND GAS COMPANY PLC
Capital/Financing Update • Jan 29, 2025
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Capital/Financing Update
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National Storage Mechanism | Additional information 
RNS Number : 0139V
Nostra Terra Oil & Gas Company PLC
29 January 2025
29 January 2025
Nostra Terra Oil and Gas Company Plc
("Nostra Terra" or "the Company")
3-Year Renewal of Senior Lending Facility
Nostra Terra (AIM: NTOG), the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, is pleased to announce that its US$10 Million Dollar Senior Lending Facility ("Senior Facility" or "Facility") with WAFD Bank ("WAFD"), formerly Washington Federal Savings and Loan, has been renewed for 3 years until 29 January 2028.
Paul Welch, Nostra Terra's Chief Executive Officer, said:
"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. This gives us significant financial flexibility to continue to grow production with the headroom to increase our borrowing base with increasing cashflow and reserves."
Highlights
Senior Facility
· Borrowing Base of $4,250,000
· Interest Rate: currently 7.50% being 3% above the Federal Funds rate
WAFD Bank Valuation
· Future Net Income: $22,705,540
· NPV10: $9,843,520
Senior Facility & Corporate Valuation
The size of the Facility and Borrowing Base will continue to be reassessed at least twice yearly. The Board anticipates that the Facility and Borrowing Base will continue to expand as the Company's production, cashflows, and reserves increase. The current interest rate on the facility is 7.50%, being a premium of 3% Federal Funds Rate. The Facility is not restricted to any geographical region and can expand further with the acquisition or development of other producing assets.
Asset Valuation
WAFD has updated its borrowing base using a report from a third-party engineering firm, APN Energy ("APN"), effective 1 December 2024. APN prepared the report for the Company to submit to WAFD. This report was based on asset performance when it was completed, which was prior to most of the recent work-over results.
Assets included in the borrowing base are as follows:
| Asset | Operator | NTOG Interest (%) | Status | Lease expiration | Total Acres (gross) |
| Pine Mills | NTOG | 100% | Producing and Development | HBP | 2,320 |
| Pine Mills (Cypress farmout) | Cypress | 32.5% | Producing and Development | HBP | 160 |
| Permian Basin | NTOG | 53% | Producing and Development | HBP | 160 |
Future Net Income attributable to the Company's interest, as determined by WAFD, using the price deck listed below is after deducting estimated future operating and development costs, production and ad valorem taxes, but before Federal income taxes.
| Category | Future Net Income (USD) | Net Present Value 10% Discount Rate (USD) |
| Proved Developed Producing | $14,900,000 | $6,266,450 |
| Proved Developed Non-Producing | $6,066,410 | $3,065,320 |
| Proved Undeveloped | $1,739,130 | $511,750 |
| Total Proved | $22,705,540 | $9,843,520 |
Future revenues were estimated using an oil price (WTI) forecast supplied by the lender which follows:
| Year | Oil ($/bbl) |
| 2024 | $65.50 |
| 2025 | $63.75 |
| 2026 | $62.50 |
| 2027 | $61.25 |
| 2028 | $60.75 |
| 3% Price Escalation to Cap | $70.00 CAP |
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
For further information, contact:
| Nostra Terra Oil and Gas Company plc Paul Welch, CEO |
Email: | [email protected] |
| SP Angel Corporate Finance LLP (Nominated Adviser and Broker) Stuart Gledhill / Richard Hail / Adam Cowl |
Tel: | +44 (0) 20 3470 0470 |
| Celicourt Communications (PR/IR) Mark Antelme / Jimmy Lea |
Tel: Email: | +44 (0) 20 7770 6424 [email protected] |
Technical Glossary
$ - US Dollar
bbl - barrel
Borrowing Base - the amount of money that a lender is willing to loan a company, based on the value of the collateral the company pledges.
Future Net Income or FNI - the projected Gross Revenues expected to be realised by the Company during the productive life of the asset less the sum of the Operating Costs payable.
Gross - total quantity or amount.
HBP - Held by Production.
Net - quantity or amount associated with Nostra Terra's interest.
Net Present Value or NPV - the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
WTI - West Texas Intermediate crude oil benchmark price in $/bbl.
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