Nostra Terra Oil And Gas Share Discussion Threads

[topicel] 22/5/2018 08:35

That will come out in the detail with the annual report for 2017 - at least the cost breakdowns will as an indication.

We are saying we have $235 a month coming in, so simple arithmetic suggests with the increased oil price and further production from G6 we have to be in the $3m ballpark.

Costs are obviously to be subtracted, but we have some wells working at as little as $16 a barrel profitably. The point I'm making is the revenues will preclude the need to obtain more financing for the drill programme from the dreaded dilution route of share issuance.

That is the only metric that has held us back as NTOG has been guilty in the past of surviving on share issue monies. It is no longer a worry and slowly we are profitable and growing...

Topicel

[dabs1969] 22/5/2018 08:26

As always great news, we are bound to finish Red. Bad news we want and this will fly. This is the most backward share going.

[markth126] 22/5/2018 08:18

Surely there are other costs to be paid out below gross margin level though which will reduce the overall profit. Surely can't be anywhere near 3m pa - if it is we are grossly undervalued in my opinion

[topicel] 22/5/2018 08:10

At last some meat on the financial bones. And there will be more in the June annual results for 2017 regarding guidance going forward and with each month, as oil prices rise, the bottom line improves.

It is likely we will see May generate a quarter million dollars net revenue and that will easily cover the expansion programme to attack the 21 drill-ready fields we have on our licences meaning no dilution is needed.

We are valued at about $8m and coming in with just around $3m in pure earnings to the bottom line. That is not a price to earnings ratio that can hold for much longer once the calculators are out among the wider investment community.

I agree, big volume day today!

Topicel

[imjustdandy] 22/5/2018 07:57

Big big volume day coming

[imjustdandy] 22/5/2018 07:30

So back to 5p.New income stream about to be added for June figures and not to forget oil is still rising.

[fhasson] 22/5/2018 07:29

Let's see this baby hit 5 today

[imjustdandy] 22/5/2018 07:12

$235,000 per month monthly run rate and that's before the new well is added. This is amazing

[bibdaddy] 22/5/2018 07:05

RNS out.....

Net revenue during April alone was US$235,347, a new monthly record for the Company

Total production at Pine Mills during April 2018 was 3,890 barrels of oil (130 bopd gross, 101 bopd net to Nostra Terra)

o Total production across Nostra Terra's Permian Basin assets was 1,853 barrels of oil (62 bopd gross, 24 bopd net to Nostra Terra)

[imjustdandy] 22/5/2018 07:05

BOOOOMThat's the news we wanted

[imjustdandy] 22/5/2018 05:45

Difficult to find oil producing investments that are cash positive and sub £5m Market Cap. 90% of oil companies have increased in value substantially but NTOG appears to be left way behind.

[neilyb675] 21/5/2018 16:01

Would be nice to get news on the next drill target ........ plus we should have some flow rates coming for the G6 well:

"The G6 well was drilled to a total depth of 3,206 feet encountering the following formations as expected; the Upper San Andres, Lower San Andres, Glorietta, Upper Clear Fork, Middle Clear Fork, and Lower Clear Fork Formations. The well intersected more than 103 feet of gross oil pay in aggregate across the target objectives, calculated from log data. Drilling was successfully completed on time and on budget.
The production casing has been run and the well cemented. The Company will proceed with completion and tie-in operations, following which it anticipates putting the well into continuous production. The Company has a 53.25% working interest in the G6 well."

[topicel] 21/5/2018 12:35

You're free to comment too steveqo!

This little oiler is making money hand over fist at the moment and two more producing wells have been added since the maiden cash flow positive announcement in February when oil was a 'mere' $55 a barrel.

As our declared return on investment per producing well was 2-to-1 at $40 a barrel according to the CEO Matt Lofgran in December, it is really only going to be valued more than its current market cap of £6m once the full year figures and guidance into post-report periods are given during June.

Entirely up to you where you feel it is going in that scenario. My bet is still 6-8p short term and double figures into the medium term - usually defined as beyond 6 months.

Oh, and we have no threat of dilution for our continued drill-ready programme of exploration as we have a $5m credit facility at 4.75% to cover all costs if cash flow and in account already (£750k from warrants) isn't enough to cover it anyway at approx £100k a drill with 21 to go in the productive Permian Basin on our leases.

We are quiet as we are confident... ;)

Topicel

[steveqo] 21/5/2018 11:38

Is anyone going to comment on here? Where is it going?

[cinoib] 18/5/2018 09:34

Topical,
Yes point taken, but I recall the previous 2 occasions when oil soared through the $100 mark only to bring a ressesion in it's tail. It's highly likely it will get to over the $140 mark before we see any serious downturn and am pretty sure we will see the same thing again if the oil cartels don't control the rise when we pass $100. If I see signs of a slow down in the next 18 months or so I will sell all as I don't intend to get caught out a third time as it takes to long to get it all back again.

[topicel] 17/5/2018 09:48

Mmmm, you are correct to an extent Cinoib.

However, these macro moves don't just reverse suddenly and 'fall apart' as you're implying mate. They are general and trend driven and for as far ahead as anyone can realistically estimate the global economy, driven as ever by the Yanks, is growing.

Chinese demand for commodities, including oil, is strong, not to the levels of the first decade of this century but nevertheless they are expanding still and want oil.

Therefore, for the rest of this year the likelihood is for oil prices to rise, especially when you throw in geopolitical tension/risks in Iran, NK and Venezuela over production.

Not to forget the Saudis want ARAMCO launched with a massive success and a high oil price assists that no end. $80 is good but it won't be a problem if it went higher for a couple of years.

I'd like to think NTOG would have fully re-rated and taken advantage by then ... ;)

Topicel

[cinoib] 17/5/2018 09:15

Oil price is high enough now, any more and it will shift the world into ressession again. Brent close on $80 is adequate for now, don't be greedy or it will all fall apart.

[imjustdandy] 17/5/2018 07:45

Oil price well up again overnight

[imjustdandy] 17/5/2018 06:54

Massive re rate still on track.

[cinoib] 16/5/2018 23:17

Based on current production + current price - costs over the last 3 months *4 x8 to give a fair valuation and given the average oiler has a p/e of around 12 that gives us at current in my book an share price of around 12.6, making this one grossly under valued and not forgetting flow rates from last well still to add. Makes this a no brainer so sit tight and wait for the chickens to come home.

[novicetrade68] 16/5/2018 14:38

I personally view anything out of Egypt a bonus, only here for 21 wells to be drilled, as I understand it by Q2 2019 most of these should be done, hence the 20p predictions.

[jon1962] 16/5/2018 14:29

Will Egypt company abide by an English court arbitration decision.Will it be enforced by an Egyptian court if it goes our way?

[novicetrade68] 16/5/2018 14:21

Well, we have flow rates coming up, expecting maybe 40-50bopd extra I suppose. Then permitting on new wells fairly imminently plus perhaps news on the arbitration process with North re Egypt. So...I can believe Nicola, plus there will be so many sellers out by now given the last few days..we're already moving towards 4.50p to buy.

[dabs1969] 16/5/2018 14:18

The MMs played an absolute blinder with this and forced out a lot of cheap shares