Nostra Terra Oil And Gas Share Discussion Threads

[chinese investor] 07/10/2015 08:37

Will NTOG just be collecting the revenues ?
Will NTOG be operating ?
Will NTOG be contributing to improving the Infrastructure etc ?

[chinese investor] 07/10/2015 08:31

88 * $45 = £2,500 Daily Income From Egypt By JV !

£1,000,000 Annual Income.

[napoleon 14th] 07/10/2015 07:40

The RNS must have "leaked" early this week, judging by the share price movement anticipating...

"Nostra Terra - 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." - See more at: hxxp://www.malcysblog.com/#sthash.Zxcg3EO7.dpuf

Still, goes in the right direction.

[whoppy] 07/10/2015 07:02

Interview with IRG

www.proactiveinvestors.co.uk/companies/stocktube/4238/egypt-deal-sets-the-stage-for-further-expansion-says-independent-resources-boss-4238.html

[johndee] 06/10/2015 20:36

This and IRG to rise fast now.

[petersmith3] 06/10/2015 20:35

PPG – Plutus Powergen the easy next 10 bagger!!!!!

The chairman of PPG said that each 20MW site would generate about £1.6m - £1.7m in revenue. EBITDA given as £1.25m - £1.5m.

10 sites on that basis = £16-£17m revenue with EBITDA of £12.5 - £15m.
Therefore possibly £3m-£4m conservatively annual profits depending on the ultimate revenue split ?.

On a p/e of 15 that's £45-£60m m/cap or 8p - 10.5p/share.

Given that's it's growing, his further comments were - 'really smash the 3 year target for 10 sites' and they have already 1 year behind them.

If those targets are smashed and as they do have 500MW of sites in the pipeline - on the same p/e the share price could see 20 - 27p.
We do know that they plan to own some sites outright at 100% which again would improve the margins significantly.

Ultimately also what do they do with that profit and they could expand into other avenues - was there not talk of this in some other countries ?

Called it a compelling investment, fully funded and no further dilution to the shareholder base.

571.43m shares in issue and 49.5% held by management/Paternoster (Charles Tatnall himself having 9.71%).

Chelverton Growth Trust PLC was accumulating and just 7 weeks ago had increased to 33.33m shares or 5.83%.

Free float will reduce all the time and one thing to remember with no more placings it could become difficult to trade in/out and regain your holding.

[whoppy] 06/10/2015 20:22

It's all about buying the 2p reserves. Employing modern technology will produce the 1,008,922 barrels of oil at higher rates. The oil cost only $3.47 a barrel which is a snip. They also have the right to drill the rest of the block for more oil. Upping the flow rates from these wells won't be a problem as the reservoir characteristics are good in this region. To buy producing oil for $3.47 a barrel is a good deal. It's at the bottom of the oil price. Another deal with much bigger reserves to come. They have an ex Gulf Keystone board member with contacts looking at a few big projects. One of them is 100MMbo plus.

[buffythebuffoon] 06/10/2015 19:25

So after royalties and taxes (taken from Govt production) Transglobe produced a net 177bopd.

Therefore, ignoring declines and development of the wells and assuming no downtime, NTOG will have, at a very conservative $45 per barrel (over the year it may be much more)
88.5 x 50 x 365 = $1,453,612.

That's ignoring the North Dabaa gas concession.

We put down $500,000 with the $1.25m deferred up to two years while we pocket the cash.

I think that's right. If anyone disagrees, please tell me (with or without exclamation marks)

Buffy

[bam bam rubble] 06/10/2015 18:13

It's fact, Transglobe pay 50% of costs but only get 20% revenue after govt share.
NTOG and IRG are acquiring Transglobe's interest so each stands to get a net 10%
while paying 25% of op/drilling costs. At this oil price a license to lose money.

A nice deal for the TSX co; $1 million cash another $3 million in two years time
while transferring the abandonment liability of 10 wells off their balance sheet.
Note that the RNS only mentioned 'gross assets' not the liabilities / net assets

[andy] 06/10/2015 17:26

Bam bam,

Yes the decline is quite dramatic, another year and if consistent the production could well be below 500 BOPD.

NTOG should really come out and explain the economics, because if your scenario above is true, their share will not be what people seem to be assuming, and making their investment decisions on.

10% and a rapidly declining production rate don't look so good.

And once the wells are out, what are the plugging costs I wonder?

[whoppy] 06/10/2015 14:45

Greg Coleman, CEO of Independent Resources, commented:

'This marks the first of what I hope to be several asset acquisitions where we can demonstrate the value we can bring to oil and gas assets by good cost management, a rigorous approach to decision making and the application of appropriate technology to optimize oil and natural gas production and reserves for the benefit of the Arab Republic of Egypt and our shareholders.'

[whoppy] 06/10/2015 14:31

Malcy's blog say's there are more deals to come.

[cashandcard] 06/10/2015 14:28

BBR,


The agenda is to push ahead and make the entire development more efficient to maximise production and cashflow. They already have an idea of how they are going to ramp-up production - it sits within their own blocks. Besides, this is just the beginning, there is more in the pipeline....



Cash

[whoppy] 06/10/2015 14:23

1,008,922 of 2p production reserves. Oil price rises.

[wrestlingmad] 06/10/2015 14:23

Ive updated the figures in my header.

[bam bam rubble] 06/10/2015 14:21

NTOG will only get 10% of gross output after the government's share though

July 2015 was 874bopd gross (87.4 bopd net to NTOG)

Considering the decline curve, 75 bopd is a reasonable estimate for H2 2015

Q2 2014 1573 bopd
Q2 2015: 884 bopd (-44% in a year)

[bam bam rubble] 06/10/2015 14:13

Transformational in terms of liabilities perhaps

Will only add a net 75 bopd (and declining) which is about the same as its US output

At the same time NTOG is taking on liabilities of 25% of future well closure costs
and the debts associated with the $2 million acquisition cost

[whoppy] 06/10/2015 14:06

Nostra Terra and IRG Charlie Long, analyst at Sanlam Securities, described it as a “transformational transaction”.

Egypt deal is a strategic breakthrough for Nostra Terra and IRG

Both junior oil stocks advanced about 20%, but the Egypt deal is more than just a day trading fillip




A deal to acquire producing assets in Egypt represents something of a key strategic move for both Nostra Terra (LON:NTOG) and Independent Resources (LON:IRG).

The pair of AIM oil companies, which set up a joint venture last month, will acquire a non-operated 50% stake in the East Ghazalat concession for US$3.5mln.

It gives the JV some 440 barrels of oil production and just over 1mln barrels of proved and probable (2P) reserves – meaning they’ll each have 220 bopd and about 500,000 barrels of reserves.

The concession also includes two gas and condensate discoveries that have been tested in the past, though they don’t currently contribute to asset’s reserves tally.

This entry into Egypt was described by Nostra Terra chief executive Matt Lofgran as the beginning of a new phase of growth.

A quick glance across AIM’s leader board on Tuesday reveals the transaction has certainly met with approval from investors, as both junior oil stocks advanced more than 20%.

But, for the companies themselves the deal is much more than a day trading fillip.

For IRG, the acquisition delivers a degree of tangibility to a portfolio that is otherwise reliant upon a farm-out process and exploration success. In the current environment, particularly, both pose considerable uncertainties.

Assets with established and ongoing production, as well as the potential development and growth opportunities, appear much more attractive at the moment.

Nostra Terra, meanwhile, is able to add scale and diversity away from the increasingly pressured unconventional plays in North America.

Significantly, the Egyptian operation will double Nostra Terra’s production volumes and that will provide support for further acquisitions.

The joint venture partners are understood to still be in the market for additional opportunities.

IRG chief executive Greg Coleman this morning told investors this would be the first of what he hopes will be several asset acquisitions.

He added that his company is targeting assets where value can be added through good cost management, a rigorous approach to decision making and the application of technology.

Charlie Long, analyst at Sanlam Securities, described it as a “transformational transaction”.

“The existing oil production is significant, but perhaps more significant is the development potential on the concession and the possibility of further acquisitions in North Africa,” Long said in a note.