Nostra Terra Oil And Gas Share Discussion Threads

[chinese investor] 06/10/2015 13:57

Share Price Will Zoom When The Details Are Published At The End Of The Month !

[whoppy] 06/10/2015 13:56

Acquired 1,008,922 barrels of oil production for $3.47 per barrel..Remember this is oil already producing so is sold at well head prices. Those gas wells must be thrown in for free?

North Dabaa 1X tested at an average rate of 16 million cubic feet per day (MMCFD) and 1,620 barrels per day of condensate. North Dabaa 2X tested at 18.7 MMCFD and 542 barrels per day of condensate. No reserves have been attributed for these discoveries.

Be good if they were hooked up for production. Must be reasonable pressure to get that sort of flow. 16MMcfd and 18MMcfd is quite good. That's a reasonable amount of condensate to. Gets sold for top dollar.

[cashandcard] 06/10/2015 13:50

pdtrussell,

As buffy explained.


Chinese Investor,


That's true. However, Egypt has one of the lowest cost bases for oil production. COP reported $4.34/bbl opex on their Egyptian oilfields. Profitable, potentially highly profitable if they can phase out waste, inefficiencies and grow production numbers.


Cash

[chinese investor] 06/10/2015 13:40

High Taxes Will Need To Be Paid To Egyptian Government !

[bam bam rubble] 06/10/2015 13:29

Steep decline rate... 1316… 1115… 1028… 884




After taking off gov royalty and tax, 884 bopd was only 177 net to Transglobe's 50%
(i.e. its 50% working interest entitled them to a net 20% of the production revenue)

So actual entitlement looks to be:
Government's share: 60%
Chinese contractor: 20%
NTOG 10%
IRG: 10%

[chinese investor] 06/10/2015 13:12

"NTOG has confirmed what it alluded to recently by acquiring some producing assets in Egypt as part of its JV with Independent Resources.
The JVCO has acquired a 50% non-operated interest in the East Ghazalat concession from Transglobe Energy for $3.5m, payable $1m cash and the rest via a 10% bearing loan note.
The concession produces 880 bopd, so 440 gross to the JV and therefore 220 to NTOG is ironically is already more than double its US production.
Matt Lofgran is clearly doing all he can to steer NTOG away from US domestic production and is joining the caravan of companies heading for what is now being called the ‘Greater Mediterranean Frontier’ more to come I suspect."

[buffythebuffoon] 06/10/2015 13:09

Cash is right. Under UK corporate law a fully paid share cannot be issued for less than the par (or nominal) value of the company.

Although I thought the statement was worthy of an exclamation mark...

Buffy

[pdtrussell] 06/10/2015 13:02

'IRG cannot place below 1p' - how come? (Sorry a bit new to this).

[cashandcard] 06/10/2015 12:58

pdtrussell,


IRG will mainly operate the assets, ntog are going to pick up the initial bill. The RNS seems to indicate that. NTOG may go for a placing, IRG cannot place below 1p (par value).


Cash

[whoppy] 06/10/2015 12:32

Seems like Transglobal was loss making and so was used as leverage to pick up their assets on the cheap. Payment for the takeover is by a 2 year loan at 10%pa, to be paid back on the 2nd anniversary. No mention of a placing. They have a $25m debt facility, so no need to issue equity.

[pdtrussell] 06/10/2015 12:07

1. Acquisition not actually taken place yet.
2. Pre-announcement to raise cash at a pump share price in my opinion.
3. IRG has next to no cash or a bank facility, how are they affording their 50% share in the JVCO? Will they offset their share of the revenue until NTOG have been paid back?
4. JVCO need cash to push the asset forward in the future, which they don't have - seems like another 'Placing to Advance Egypt' is on the horizon.

Still some questions to be answered..

[cashandcard] 06/10/2015 11:57

buffy,


All for you of course.


Cash

[whoppy] 06/10/2015 11:56

I'm amazed there has not been more buying.
I know oil stocks are out of favour, but NTOG is at it's lowest level ever. Having just acquired some decent producing assets in a new country, that has plenty of oil, and new partnerships, it's a step change for the company. They've just said themselves they have trebled production with this acquisition. Oil price on the up a bit aswell.

[chinese investor] 06/10/2015 11:12

Up From Here !!

[buffythebuffoon] 06/10/2015 11:08

Discerning use of the exclamation mark Cash. :-}

Buffy

[cashandcard] 06/10/2015 10:51

buffy,

NTOG £3.19mln.

IRG £1.5mln!

Both undervalued with along way to go.


Cash

[buffythebuffoon] 06/10/2015 10:48

Current market cap......

£3.19m!

Damn, it's catching...

Buffy

[chinese investor] 06/10/2015 10:43

Agreed !

£2 Million Annual Income From Egypt !

[buffythebuffoon] 06/10/2015 10:40

220bopd to NTOG.

Buffy

[chinese investor] 06/10/2015 09:21

440 * $50 = £13,000 Daily Income From Egypt By JV !

[andy] 06/10/2015 09:15

Yes it could.

I would like to see a breakdown of current production costs,and then make a more informed judgement.

[whoppy] 06/10/2015 08:47

The Dabaa 2X well was an appraisal well for Dabba 1X. The two finds are not part of a connected pool, and so are separate.

[whoppy] 06/10/2015 08:45

This result is the result for Dabaa 1X.

East Ghazalat, Arab Republic of Egypt (50% working interest)

Operations and Exploration

The North Dabaa 1X exploration well was drilled to a total depth of 14,740 feet and cased as a Cretaceous oil and Jurassic gas condensate discovery. Based on open hole well logs and samples, the well encountered approximately eight feet of net oil pay in the Abu Roash formation and 23 feet of net gas/condensate pay in the Khatatba formation.

The Khatatba formation (9,882 - 9,906 feet) was completed and flow tested using the drilling rig for a total duration of 72.5 hours. During this period, approximately 48.9 million cubic feet of gas ("MMcf") and 4,893 barrels ("Bbl") of 56.9° API condensate were recovered on choke sizes varying from 18/64 inch to 64/64 inch and corresponding wellhead drawdowns of 2% to 44%. This represents average rates during the entire flow test of 16.2 million cubic feet of gas per day ("MMcfd") and 1,620 barrels per day ("Bpd") of condensate. An extended flow period of 26 hours was performed on a 64/64 inch choke during the test resulting in rates of 26.0 MMcfd of gas and 2,571 Bpd of condensate. Shut-in periods were conducted during the test, however a detailed well test analysis has not been performed. The test results should be considered as preliminary and are not necessarily indicative of long-term performance. The well was suspended and the drilling rig was released. The new pool discovery may require additional drilling to determine the extent and commerciality of the discovery. The North Dabaa 1X exploration well was drilled, cased, completed and tested for a total estimated cost of $6.6 million ($3.3 million to TransGlobe). The North Dabaa 1X discovery is located approximately 1.4 kilometers east of the Company's newly awarded 100% working interest South Ghazalat concession.