 have announced an increase in their cash pile after selling its interest in the Chrisholm Trail Prospect.){kind=link}
Exploration and production company Nostra Terra Oil and Gas (LON:NTOG) have announced an increase in their cash pile after selling its interest in a Central Oklahoma Prospect.
The company said $600,000 in cash was raised on the disposal of its interest in the Chrisholm Trail Prospect. The market reacted positively to the news after Nostra Terra revealed the sale price was significantly higher than previously thought.
Nostra Terra Oil and Gas has exposure to Egypt and the United States, where it holds interests in oil and gas exploration projects.
Dilution
Shareholders have been heavily diluted over the past year as the company has been forced into capital raising.
In March 2016 the company raised £350,000 and a further £250,000 in July 2016.
The falling price of oil has ravaged Nostra Terra’s revenue and cost-cutting exercises have not been enough to prevent the board going to the market for extra funds.
Nostra Terra’s shares have fallen from highs of 6 pence in February 2016 to currently trade beneath 2 pence per share.
Unlocking value
Despite the company’s poor share price performance, CEO Matt Lofgran remains upbeat. On recent developments, he commented:
“Having just acquired our 80 percent working interest in the Pine Mills oil field, this is most welcome news for Nostra Terra. We’re pleased to receive the additional non-dilutive funds. The additional capital further strengthens our balance sheet, at a pivotal point in Nostra Terra’s turnaround. The extra funds will increase our ability to unlock value across our portfolio, building both oil production and reserves.
“Workovers are already taking place this month, both at Pine Mills and our other recent acquisition in the Permian Basin. Our goal is to increase oil production, while also continuing to pursue new acquisition targets with existing cash resources. We look forward to providing further updates shortly.”