AIM-listed Nostra Terra Oil and Gas has reported that it surpassed 'break-even' in January 2013.
The company, which has projects in the US, said the result was underpinned by greater than expected production from its wells in the Chisholm Trail prospect in Oklamhoma, combined with production from the rest of the company's portfolio.
Following additional production from recent wells, the company's anticipated monthly revenues for January 2013 are expected to be approximately $110,000 net of royalties, more than double the November 2012 figure.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nostra Terra said that the first four Chisholm Trail wells were "all successful producers exceeding the board's expectations and represent an aggregate working interest of 18.52%".
The acquisition of new leases and new well permitting is continuing in the Chisholm Trail Prospect area.
The company reported that it was approximately one third of the way through the programme and that the board anticipated Nostra Terra could have an equal or greater aggregate working interest in upcoming Chisholm Trail wells.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: "With our operating overheads now comfortably covered by production, free cash flow will be applied to the leasing and drilling of new wells.
"Several wells are planned for 2013 within Chisholm Trail as well as in other prospects. We will continue to minimise overheads and remain focused on growing our production throughout the year. As we are approaching our initial target of 125 barrels of oil equivalent per day (boepd) net to NTOG [Nostra Terra Oil & Gas] we are now turning our attention to our next target of 250 boepd."
Nostra Terra's share price was up 5.66% to 0.56p at 11:14 on Monday.
MF
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
