Business
$5m Senior Lending Facility & Operational Update
$5m Senior Lending Facility & Operational Update.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3843D Nostra Terra Oil & Gas Company PLC 31 January 2018 \n\n31 January 2018\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nCompletion of $5m Senior Lending Facility & Operational Update\n \nNostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce completion of its new Senior Lending Facility (\"the Facility\") with Washington Federal Bank. \n \nAs previously announced, the Facility size is US$5 million with an initial borrowing base of US$1.2 million, which is available for immediate use (the \"Borrowing Base\"). The Borrowing Base is based on oil production at Pine Mills, using a conservative oil price of US$36.50 per barrel or less for the next 6 years. The size of the Facility and Borrowing Base will be assessed at least twice a year and Nostra Terra's board (the \"Board\") expects both to grow as the Company increases its Proven 1P reserves and oil production. \n \nWith oil prices improving, Nostra Terra also has the opportunity to increase the size of the Facility and Borrowing Base by using the BP Energy Company Hedging Facility (as announced on 26 September 2017 and 19 October 2017). Nostra Terra has not yet hedged any of its production and further updates will be provided as and when appropriate.\n \nOperational Update\n \nFollowing the recent warrant exercises and completion of the Facility, Nostra Terra is well funded to accelerate its planned drill programme across its Permian Basin assets whilst keeping dilution for shareholders to a minimum. Nostra Terra's goal is to become cash flow positive at the corporate level through increasing oil production. The Company currently has 24 drill-ready locations to help achieve this target. \n \nThe completion process at Nostra Terra's recently drilled Twin Well continues to proceed according to plan and the Company expects it will come in slightly under budget. The Company will provide an update on progress in the coming days.\n \nOnce commercial flow testing of the Twin Well is finished, the Company expects to announce the next phase of its drill programme. Nostra Terra is currently working on the permitting process for three new wells across its Permian Basin acreage. Once ...