September 19, 2024

Nostra Terra Oil and Gas Company PLC

Interim Results for the six months ended 30 June 2024

Nostra Terra (AIM: NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA, is pleased to announce its unaudited results for the six-month period ended 30 June 2024. A copy of the Interim Results is available on the Company's website, www.ntog.co.uk.

Financial Highlights

·    $938,000 Revenue for the period (30 June 2023: $1,472,000)

·    $230,000 profit before non-cash items (depletion, depreciation, amortisation and interest)

·    $792,000 loss for the period (30 June 2023: $48,000 profit)

Operational and Strategic Highlights

·    12,593 barrels oil total production for the period (30 June 2023: 21,265 barrels oil)

·    Change in Leadership with relevant skill set and experience; now focusing on cashflow

·    New CEO (Paul Welch) taken over from Founder after 15 years with a clear plan for organic growth at Pine Mills

Post-period events:

·    Strengthened Executive and BOD with exceptional in-depth O&G / Permian experience

·    Clear plan to improve Pine Mills' production and step-up in cash flow by year end

·    Significantly trimmed G&A: concentrating on Pine Mills while divesting non-core assets (South & West Texas)

·    On 17 July 2024, following approval at general meeting, the company announced the subdivision of ordinary shares of £0.001 each into one Deferred Share of £0.0009 and one Ordinary Share of £0.0001 each.

·    On 29 July 2024, the company raised £450,000 (before expenses) through a placing and subscription of 1,499,999,998 new ordinary shares.

Chairman's report

The first half of 2024 was a period of change for Nostra Terra.  New leadership and a newstrategy to focus and reinvest in our core Pine Mills asset asset was announced in June 2024 and put into effect post period end with the implementation of with a clear plan to increase Pine Mills' production and step-up cash flow by year end.

Operationally, Nostra Terra operated during the first half of 2024 in an environment of generally lower oil prices than in 2023. Despite a strengthening of WTI prices in the first quarter of this year, they have subsequently been on a downward path. At the time of writing, prices for WTI October delivery sit just below $70 per barrel.

The review of existing 3D seismic data over the Pine Mills area yielded potential new locations that could host wells with similar (highly attractive) performance characteristics to our existing Fouke wells. These new locations represent considerable, relatively low risk upside to our existing resource base in the area.

Cost reduction initiatives, are expected to show an impact on the 2024 full-year results. The Pine Mills work involves enhancing or reinstating production from a number of existing wells in a cost-effective manner. These investments are expected to have short payback times and are also likely to have a positive impact on the results in the second half of the current financial year. This work is now well underway, and we hope to be able to announce initial results in the coming weeks.

Nostra Terra's board saw several changes in the first half of this year, with Matt Lofgran stepping down as CEO, and Paul Welch moving from non-executive director to take on that role, Jim Newman, our largest shareholder, joined the board as a non-executive director. Mr. Newman established his equity position in the Company through his participation in a successful fundraise by the Company of £300,000 in January 2024

Post period-end, we were pleased to announce the appointment of SP Angel Corporate Finance LLP as both sole broker and as nominated advisor to the Company. Cost reduction initiatives have also continued, with the board of directors being focused on managing the Company's cash flow.

I would like to thank shareholders for their continued support and look forward to updating them on further developments.

Dr Stephen Staley

Chairman

19 September 2024

Chief Executive Officer's report

Production was down in the first half of the year due to declines in the Pine Mills wells, the sale of non-performing assets in West Texas and the cessation of production in South Texas.

Revenue was $938,000 during the first half of the year (30 June 2023: $1,472,000). Gross loss from operations for the period was $792,000 (30 June 2023: $48,000 profit). Average oil sales prices during the period were $74.45 per barrel (30 June 2023: $70.00 per barrel).

Production declines, which started in the second half of 2023, continued into the reporting period.  However, the issues behind the increased decline rates have been addressed, and the field rates are now stable. Our cost reduction initiatives started during the second half of the reporting period and post period, have now been fully implemented.  The asset disposal process continues with two properties remaining to be sold.  The initial disposal of the West Texas assets (Coleman and Raschke) significantly reduced the operating costs in the area.  The remaining asset, the Grant lease, is now operating profitably, and the offers received were insufficient to justify a sale.  In South Texas, two assets are in a sale process as a package and have attracted multiple interested parties and offers but these sales have yet to close.  The Company has no further investment plans for these assets, and they will continue to be actively marketed until they are sold.   

The proceeds of the successful £450,000 fundraising, before expenses, carried out in July 2024, are being used to fund a new strategic initiative in Pine Mills. These funds are being used to return six currently idle wells back to production in the Pine Mills field.  There are currently two workover rigs in the field, and two of the six planned workovers are now complete, with the remainder expected to be complete by the end of September 2024.  The target of these first six workovers is to increase field production by 38 bopd, net to NTOG, and I look forward to updating the market once we have evaluated the workovers' impact.

Finally, concurrent with the technical study ongoing with the 3D seismic review, we have also initiated a second technical study in the Fouke area to provide pressure support.  The Fouke 1 and 2 are still producing water-free and appear to be some distance from an active aquifer. The high volumes these wells have produced has reduced the reservoir pressure locally, and these wells are expected to benefit from additional water injection to increase reservoir pressure.  This study aims to determine how best to increase the reservoir pressure locally and how much this will increase production rates and, ultimately, the reserve base. 

I also wish to sincerely thank our shareholders for their continued support. I look forward to updating you as we continue to grow our Company.

Paul Welch

Chief Executive Officer

19 September 2024

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc

Consolidated Income Statement

for the six months ended 30 June 2024

The Group's operating loss arose from continuing operations.

There were no recognised gains or losses other than those recognised in the income statement above.

Nostra Terra Oil and Gas Company plc

Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2024

Nostra Terra Oil and Gas Company plc

Consolidated Statement of Financial Position as at 30 June 2024