Not had much time recently due to various matters of importance one of which may become known in the next few days or so. If it comes off there will be plenty of chatter to deal with. If it doesn’t then so be it. The fates are at work.
Which brings me on nicely to Nostra Terra Oil & Gas. It’s with a certain amount of head scratching that I look around the London AIM resources sector. In particular the lowly state of a company sp that has in recent months finally pulled off what it has been promising to do for well over 12 months. Basically treble it’s boped!
I can not believe the Nostra Terra Oil & Gas (LON: NTOG) share price is spot 0.18 of a British penny? They recently updated the market; announcing that the 13th production well in the Chisholm Trail (CT16), had produced an average 555 Boepd. Nostra owns a 20% working interest in this well which now adds 87 boepd to its last known production base of 84boepd that brings their production to approx. 161 boepd. From the lows of 45 boepd last year Matt Lofgran and his team have basically trebled their production. Yet sadly for NTOG the oil price has slumped, currently West Texas Intermediate (WTI) is $54. How cruel the fates can be. Or can they be turned to ones advantage?
It’s now abundantly clear that Lofgran has not been talking the talk but actually walking the walk. Delivering on what he has promised. Increasing production and revenues. The next production update will clearly show a small oiler in rude health. Increasing production and increasing revenues which will more than offset the decreasing oil prices.
Now remember once the USA/Saudis re-apply the brake on oil production; small companies still around, such as NTOG, will rapidly rise in value. I have a 1p target price on them. I expect there’s going to be increasing production/revenue over the next 6 months. This bodes well for holders.. It works like this. Even when the OP is falling if you keep increasing bopd your value is increasing exponentially as revenues also increase, then add in a arising OP, which will happen in H2, then the recipe is there for big gains.
Fundamentally Nostra Terra Oil & Gas are in a very sweet spot. Remember there’s always going to be plenty more good news to come. I wonder where their sp would be today if the oil price was $100 a barrel? 0.7? A penny? Probably some-where in between.
I can see them trading at multiplies of where they currently are once the OP starts to rise.
If you’re in then stay in. If you’re out then you decide. I have recently made yet another NTOG purchase. It’s money for jam!