Nostra Terra, the UK-headquarterd independent producer, said it is focused on acquiring producing assets with exploration potential in North Africa.
Announcing its unaudited results for the six months to June, the company reported a gross profit of £268,000. Revenue was £393,000, compared to £414,000 for the same period in 2014. The loss before tax was £1million compared to a loss of £362,000 last year.
Nostra Terra has acquired a 100% working interest in the Paw Paw prospect in the US and had entered a joint venture with Independent Resources to expand into Egypt.
Chief executive Matt Lofgran said: “The industry is going through a very tough time right now with low and volatile oil prices caused by global oversupply, primarily driven by horizontal drilling and fracking in the United States.
This has led US focused oil companies to concentrate on capital discipline and balance sheet strength while they wait for stability and higher oil prices before committing to new developments. This has been shown in the drop in US production and drill rigs turning in recent months.”
“While we are not aiming to time the bottom of the market, we are in a cyclical business and believe the path of least resistance for oil prices is up. Given this, we believe it’s an opportune time to look for further investments.”
Lofgran said focus remained on producing basins with conventional reservoirs; “We are targeting existing producing assets with further upside through exploration.”