You’ll all recall the Blogs musings on Nostra Terra Oil & Gas at the height of the Basher attack last year. Well we haven’t been idle or taken our eyes off the company ! And it is with great pleasure that I now find myself having to eat some humble pie.
The position of the Blog on Nostra has been to wait and see which way the wind was blowing vis-a-vis all the allegations swirling around the internet. As I’ve stated many times I have no personal axe to grind here and I genuinely respect Matt Lofgran who after having been installed as the new CEO set about initiating a full fundamental review of the company.
I have spoken to many here re’ the company and I have been in email/telephone contact with Nostra over the last 6 months or so trying to evaluate how Lofgran has been performing; ergo Nostra.
To say that the CEO has been putting in a decent performance doesn’t really do him justice. Lofgran has excelled over the last 3/4 months the recent announcement of a parting of the waves with Hewitt now gives Nostra a thumping $1.2 million dollars once the agreement is closed and full operational control of Boxberger and Bloom with a 100% working interest.
They have also dipped their toes into an agreement with New Century Exploration re’ Vintage Hills although these are small by industry standards it is my understanding that these small “Bread and Butter” investments are designed to bring incremental revenues into their coffers as well as establishing Nostra with a foothold in the areas of operations they also have the added advantage of allowing Nostra to build up industry relationships.
But they are not key to Nostra’s strategy. I asked Matt Loftgran this question in a 2 hour telephone conversation
Q/ Considering the small WI in some of Nostra’s interests, Vintage Hills etc Does the company believe that this strategy represents the way forward for Nostra?
A/ “No, this is not our strategy. Taking small non-op positions serve several purposes; the return, the information, relationships, and more. The relationship is an important element. It gives us a chance, with a relatively small investment, to see how the other party operates in order to evaluate a bigger potential relationship. On every small investment we still spend considerable time to evaluate all aspects of the investment as we’re always looking beyond the one well.
Our focus is to go into existing producing fields, take them horizontal to revalue the field, then monetize through various options. While this may not always be through taking a field horizontal, we do believe that this is where we’re best suited to make the biggest impact and create shareholder value. We are currently evaluating several candidates, which include producing assets and new leases. Ownership will range from 25-100% WI with our preference being towards operating.”
Now by my calculations the company are generating approximately $3000/$4000 net per day from their various interests and with cash in the bank of just under £1,000,000 as of June 10th interims with a further $1.2 million dollars on its way from Hewitt this gives Nostra a healthy cash pile given their relatively small size. So it looks and feels to me that reading between the lines Nostra are in the market for further acquisitions which will almost certainly increase their BOPD this year 2011. This was confirmed to me by a source who expects their BOPD to significantly increase through-out 2011 both by further acquisitions and increased production from Nostras current assets particularly Bloom and Boxberger.
Now here’s some very good pointers as to how well the company have been performing over the last 3 months or so.
1/ Nostra Terra Oil & Gas are DEBT FREE.
2/ BOPD is expected to increase significantly this year (2011)
3/ Nostra are rumoured to be opening offices in Dallas TX this year.
4/The share price is in the ascendency.
6/ A whisper of an institutional buyer.
Now take into account that the SP is still way under-value and you have all the right ingredients for further increases here this year.
They are increasingly looking likely to at the very least double possibly treble from where they now sit over the coming weeks and months expect further good news from Nostra. The future is getting significantly brighter!
They should be trading at 2.5p with a 12 month 5p target. Woefully under-value as of today!
I will as of now upgrade them.
Well done to the Nostra Terra Board. Keep up the good work!
NB. I must just add that I have found Nostra Terra to be one of the most helpful companys in dealing with my constant bombardment of questions over the last several months. So much so that they have personally invited me to the USA for a Grand Tour of their operations.