Business
Operational and Corporate Update
Operational and Corporate Update.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 2302P\n Nostra Terra Oil & Gas Company PLC\n 08 June 2020\n \n \n \n \n 8 June 2020\n \n \n \n \n \n Nostra Terra Oil and Gas Company plc\n \n \n (\"Nostra Terra\" or the \"Company\")\n \n \n \n \n \n Operational and Corporate Update\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, is pleased to provide an operational and corporate update.\n \n \n \n \n \n Highlights\n \n \n · \n Significant improvements in cashflow:\n \n \n o \n Over 60% reduction in monthly overheads, versus 2019 monthly average\n \n \n o \n Lifting costs at Pine Mills reduced from \n c.$23/bbl down to c.$16/bbl\n \n \n · \n Additional 1,600 bbl storage added to Pine Mills to provide flexibility on sales\n \n \n \n · \n Discovery Loan extended until 1 April 2022\n \n \n · \n Robust hedges remain in place - $48,000 received for May contract\n \n \n · \n Progress at Pine Mills farmout with decision on additional interest extended\n \n \n \n \n \n The Board has performed a thorough review of all aspects of the business, including all corporate and operational costs. As a result, further reductions in overhead costs have been achieved. \n \n \n \n \n \n In addition, whilst the Directors consider Nostra Terra to already be a low-cost operator in Texas, the Company has been able to reduce lifting costs even more at Pine Mills over the last couple of months, from c.$23 per barrel down to c.$16 per barrel. \n \n \n \n \n \n These cost reductions have yielded a significant improvement in cash flow.\n \n \n \n \n \n Reduction in Overheads\n \n \n Nostra Terra has now achieved a reduction in monthly overhead costs of over 60% versus the monthly average during 2019 (this excludes one-time expenses already incurred - in particular, costs dealing with the two requisitions initiated by one of the Company's shareholders earlier this year). Savings have been made across many aspects of the business, including significant cuts in remuneration to the CEO (per RNS of 8 April 2020) and to the non-executive directors. Both non -executive directors have now agreed to be paid in shares, at a time to be determined, in lieu of 3 months of their annual cash fees. The remainder of the non-...