LONDON (ShareCast) - (Sharecast News) - Texas-focussed oil and gas exploration and production company Nostra Terra updated the market on its operations on Monday, reporting a "significant" improvement in its cash flow.
The AIM-traded firm said it had achieved a more-than-60% reduction in monthly overheads compared to the 2019 monthly average, adding that lifting costs at Pine Mills had reduced to around $16 per barrel, from $23 per barrel.

An additional 1,600 barrels of storage had been added to Pine Mills, to provide flexibility on sales, and the board said the Discovery Loan had been extended to 1 April 2022.

It added that "robust" hedges remained in place, with $48,000 received for the May contract.

Progress had also been made on a farmout at Pine Mills, with the decision on additional interest extended.

"The combination of these improvements shows the company has taken prudent steps in the last year and has continued taking action, making a significant improvement to cash flow," said chief executive officer Matt Lofgran.

"By adapting swiftly to the lower oil price environment that we're now experiencing, we benefit now and anticipate benefiting further as prices hopefully continue to improve to more normal levels.

"At the same time, the company is planning to increase production through a combination of existing assets, such as the farm-out at Pine Mills and assessing workovers at Pine Mills, and screening for new assets both internationally and in our core area."

At 1210 BST, shares in Nostra Terra Oil and Gas Company were up 12.8% at 0.39p.

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