Nostra Terra Oil & Gas (LON:NTOG) share price ticked up on Thursday, after the company announced it had arranged for its margin requirement to be waived.
The oil and gas exploration company revealed that as a result of its ability to “demonstrate a track record of stable and secure oil production”, BP Energy has agreed to waive its margin requirement.
This improves the company’s working capital position as it longer needs to hold cash on margin.
Nostra Terra announced the hedging facility w4ith the subsidiary of oil giant BP PLC (LON:BP) late last September.
The company has also entered negotiations with three banks, including TCB, to “ensure it has the best facility in place not just for immediate growth plans but also those over the coming years.”
Nostra noted that as a result of the BP Energy hedging facility, it finds itself in a “better funding position than it anticipated to be able to deliver its growth strategy”.
Alongside a bounce for the company after the hedging facility announcement, earlier last month shares also rallied after revealing it had secured the remaining working interest in Pine Mills oilfield.
The UK-based company revealed it had secured the additional 12.5 percent in the Pine Mills oilfield in Texas, giving it majority ownership of the oilfield.
As it stands, average four-month oil production at Pine Mills is at 106 bopd, with a sustained 15 percent increase in production since assuming the majority stake.
The London AIM-listed company focuses primarily on established hydrocarbon areas in both the USA and in Egypt.
Over the last two years, Nostra Terra has acquired interests across the U.S in Kansas, Texas, Colorado and Oklahoma.
Shares in Nostra Terra Oil & Gas are currently trading up 35.48 percent as of 14.02 (GMT).
Elsewhere across the markets, construction and services provider, Interserve (LON:IRV) shares plunged after it issued its second profit warning for the year.