It’s been a busy week for Nostra Terra oil & gas. Nostras’ head honchos have been networking while wheeling & dealing at the Oil Council World Assembly held this week in London.
I finally managed to bend Lofgrans’ ear with a few well placed cutting incisive questions that elucidated some favourable responses. More of which later in the article.
Nostra Terra Oil & Gas are a tiddler and have been on & off the radar of most investors/traders at some point or other during the last year or so. They are a small exploration and production company focused on emerging plays within established hydrocarbon regions of the United States. The similarities between Magnolia Petroleum & Nostra COULD be used by investors as a gauge as to how high their sp COULD go. Nostras’ bopd will shortly surpass MAGP’s
Nostra have a full remit of producing assets varying from 0.16% to 100% interests. Their current Barrelage is thought to be around 55 barrels of oil per day, which in itself is significant as this means that the company are at or very close to break even.
During the last two years, Nostra has quietly & cautiously (too cautiously for my liking) acquired interests in Kansas, Texas, Colorado and Oklahoma. It is this quiet & conservative approach that at long last is now beginning to bear fruit. Lofgran is a decent, honest chap whose integrity shines through. He doesent do bullshit. He has steadfastly refused to release 24 hour IP rates as they are deemed highly mis-leading.
This is a company who are genuinely working 24/7, getting their hands dirty for the benefit of share-holders while having to endure virulent abuse online over the past two years. Much to their credit they have battled & faced down their detractors.
Make no mistake Lofgran & his right hand man, Alden McCall, are quietly succeeding at Nostra & I suspect that come the end of this year 2012, holders are in for a pleasant surprise.
It is whispered in dark corners that the recent increases in bopd could further double to over 100bopd. Now that’s not the company telling me that. It’s my extrapolations and discussions with market thinkers/analysts bearing in mind that the first Chisholm trail drill has come in at 258 boepd. Remember that all the Chisholm trail drills are on the same play within a mile or so of each other. They are all being drilled on the same geology/formation which means that it’s a fair assumption that they will come up with similar results.
Investing or trading is all about getting ahead of the curve whether that’s by gleaning information from sources or extrapolation of company accounts, news, views, research, technicals or using a combination of all of the above helps. However there’s one constant that can be used when it comes to oil company’s. Ever increasing production always increases sp value over the short, medium & long-term. More oil equals more revenue. More revenue equals more profit. More profit underpins & helps to push the sp up.
It’s becoming patently obvious that Nostra oil production has been and is increasing. Options vest at 125 bopd. Investors could use this as the first target for the Nostra team to reach. I personally suspect that this target could be breached a lot quicker than the market is being lead to believe. Matt keeps reiterating to me that “Nostra are focused on pursuing projects where added value and strong cash flows can be generated through the use of advanced technology & disciplined cost control. It’s an exciting time for Nostra as we home in on our targets for year end 2012”
Part of the key to Nostra Terra’s growth strategy is forming alliances with proven oil producing success stories; hence their tie up with Ward Petroleum et alia. It’s by latching onto the coat-tails of success that they are now on the cusp of doubling their oil production and closing in on 125 bopd. It’s also my understanding that there’s going to be further tie-ups with Ward Petroleum as Chisholm Trail is “exceeding expectations”
Nostra Terra Oil & Gas are debt free, well funded and about to breach 100 bopd (in the next 14 days or so) they also have $1.5 million dollars plus interest (10%) & costs outstanding via the Richfield note. My understanding is that the company look a good bet to announce all of the above in the next 2/3 weeks or year end at the latest.
Watchlist or buy the choice is yours!