 shares soared after the company announced it had secured the remaining working interest in Pine Mills oilfield.){kind=link}
Nostra Terra Oil & Gas (LON:NTOG) shares soared after the company announced it had secured the remaining working interest in Pine Mills oilfield.
The oil and gas exploration company secured the ramining 12.5 percent in the Pine Mills oilfield in Texas, taking its ownership to 100 percent.
Notably, average four-month oil production at Pine Mills rests at 106 bopd, with a sustained 15 percent increase in oil production since assuming operatorship of the oilfield.
Back in January, the company inherited a court judgement against Hammerhead Management Partners from the previous majority owner GFP Texas, worth £450,246 and secured by Hammerhead’s 12.5 percent stake in Pine Mills.
On Tuesday, an auction was held for the sale of the stake, which facilitated Nostra Terra’s assumption of full ownership of the oilfield.
Consequently, Hammerhead owes the company $594,031, made up of the balance from the primary judgement and a second trade payable.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
“We’re very pleased with the results. Following yesterday’s auction we have confirmed Nostra Terra’s 100 percent Working Interest in Pine Mills, effective from 1 November 2016. We anticipate this will have a materially positive impact on the forthcoming Interim Report for the 6 months ended 30 September.
Look ahead, Lofgran added:
“Combined with the operational improvements we have made at Pine Mills, both in cutting costs and increasing sustained oil production, we expect to be able to demonstrate tangible evidence of Nostra Terra’s turnaround over the course of 2017.
At the same time, we are making similarly significant progress in Egypt and expect to be able to make an announcement shortly.”
Nostra Terra is an oil and gas exploration company, primarily focused on established hydrocarbon areas in both the USA and Egypt.
Across the last two years, Nostra Terra has acquired interests in Kansas, Texas, Colorado and Oklahoma.
The company is listed on the AIM market of the London Stock Exchange.
Shares in Nostra Terra are currently up 23.34 percent as of 10.15AM (GMT).