Business
Further Reserves Update
Further Reserves Update.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5923P\n Nostra Terra Oil & Gas Company PLC\n 20 October 2021\n \n \n \n \n \n \n \n \n \n \n 7.00am 20 October 2021\n \n \n \n \n \n \n Nostra Terra Oil and Gas Company Plc\n \n \n \n \n (\"Nostra Terra\" or \"the Company\")\n \n \n \n \n \n \n \n \n \n Further Reserves Update\n \n \n \n \n \n \n \n \n \n \n \n Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, \n is pleased to provide an update regarding its recently published Reserves, both in terms of presentation and the effects of the current oil price.\n \n \n \n \n \n \n \n \n Highlights\n \n \n \n \n \n · \n $68.5 million \n Future Net Income (total proved), assuming $75 flat oil price\n \n \n o \n 189% increase from value reported on 29 Sep 2021\n \n \n · \n $22.5 million NPV10 (total proved), assuming $75 flat oil price\n \n \n o \n 113% increase from value reported on 29 Sep 2021\n \n \n \n \n \n \n \n \n \n \n \n Nostra Terra updated its reserves (\"Reserves\"), using a third-party engineer APN Energy (\"APN\"), effective 1 September 2021 and as announced on 29 September 2021. The reserves report was prepared by APN for the Company for submission to support its Senior Lending Facility (\"Facility\"). The increased size of the Facility to $10 million and Borrowing Base (funds immediately available for use) to $2.35 million, are supported by the increased reserve value, Future Net Income (\"FNI\") and Net Present Value (\"NPV\") using the bank's price deck. These are typically a more conservative position compared to actual oil prices.\n \n \n \n \n \n The Company has engaged APN to produce updated figures to reflect the current increase in commodity prices, as well as providing a breakdown of each area of US operations. These calculations use a flat $75 oil price, as detailed below, and seek to show the cashflow benefit the Company could get from stable oil prices at the levels currently being experienced.\n \n \n \n \n \n The size of the Facility and Borrowing Base will be reassessed at least twice yearly. The Board anticipates the Facility and Borrowing Base will increase with increased oil production, oil prices, and could be further in...