Nostra Terra, the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt is eyeing potential acquisitions as the oil price tumbles, the company has confirmed.
In the current environment with lower oil prices the company sees an increasing number of attractive opportunities.
Nostra Terra has received an extension on its lending facility with an initial nominal limit of $25 million and is in various stages on deals, including contract negotiations on certain producing assets within the USA.
Chief executive Matt Lofgran, said: “Our focus is on the acquisition of producing assets with further, low risk upside potential.
“Many of the companies struggling today either have assets with higher operating costs, have applied leverage at much higher oil prices, or sometimes both cases.
“With low oil prices we see this as an opportune time to acquire assets using debt. This strategy allows us to grow our production and reserves now, which should have a significant positive impact on cash flow when oil prices strengthen.”
Lofgren said he had two different groups actively evaluating new opportunities, performing due diligence, and in contract negotiations.
In a operational update for the fourth quarter of 2015 Nostra Terra said it had completed the Ghazalat acquisition providing the firm with its initial revenue generating asset in Egypt.
Fourth quarter net production of 15,400 barrels of oil and revenue of US$242,499.
Discussions are in progress with East Ghazalat’s operator North Petroleum to improve this asset’s financial and operating performance
The company is also finalising arrangements to invoice and receive revenue payments directly from the Egyptian General Petroleum Company to improve cash flow.
Output in October and November was hit by an interruption in production at one of the field’s wells before Independent Resources Group and Nostra Terra, through their joint venture company, worked with North Petroleum to restore the well to its previous productivity.
The JV has identified five key objectives for East Ghazalat comprising, a reduction in operating costs; increasing production through implementing operational improvements; drilling new lower risk oil wells; improving the asset’s cash flow through accelerated invoicing for production and quicker receipt of outstanding invoices; and developing the North Dabaa gas discovery.
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