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Nostra Terra shares climb 15% as company achieves cash flow positivity
Oil and Gas exploration and production firm Nostra Terra's share prices leapt over 15% on Tuesday as the company announced it turned cash flow positive in February.
Operational improvements made at the Pine Mills project, increased productivity from the Twin Well project and the improving oil price environment have helped the company surpass breakeven, with February constituting its maiden month of cashflow positivity.
Matt Lofgran, chief executive of Nostra Terra, said: "February has been an intensely rewarding month for Nostra Terra. Not only has the Twin Well surpassed our expectations, but we've also hit the major milestone of achieving our first month of being cash-flow positive as a company as a whole."
Subject to oil prices, Nostra Terra expects to remain cash-flow positive in the coming months, with an aim of achieving annual profitability.
"Since we started our turnaround strategy in 2016 this has always been our goal. To have reached this target so early in 2018 is extremely encouraging and I would like to thank our operations team for all their efforts in the field. We now have a very strong foundation upon which to build the company, as we introduce new assets and grow oil production," said Lofgran.
In January, the company announced the availability of an initial borrowing release of $1.2m at a 4.75% interest rate, which Nostra Terra said will fund is continued strategy of increasing oil production, increasing cash flow generation and developing its portfolio, which already includes projects in Texas and Egypt.
As of 1453 GMT, Nostra Terra's shares were up 16.56% at 4.40p.