WTI (July) $61.20 -37c, Brent (July) $64.44 -47c, Diff -$3.24 -10c.
USNG (June) $3.25 -12c, UKNG (June) 86.50p -1.1p, TTF €36.275 -€0.545.
Oil price
Oil has risen slightly today after a down week caused primarily by indifferent inventory stocks and the US/Iran situation but was added to yesterday by Opec talk in which, ahead of next Sunday’s meeting chatter was about releasing another 411/- b/d in July.
Seascape Energy Asia
Seascape has announced its full year results for the 12 months ended 31 December 2024.
Highlights
Corporate
· Completed strategic pivot to focus on building a full-cycle E&P business in Southeast Asia following a detailed board review
· Norwegian exit completed through sale of Company’s 50.1% interest in Longboat JAPEX Norge AS to partner JAPEX for £1.9 million ($2.5 million) in cash plus the assumption of £6.5 million ($8.5 million) of debt attributable to the Company
· Company renamed and rebranded as Seascape Energy Asia plc (formerly Longboat Energy plc), along with a new stock exchange ticker symbol: SEA
· Awarded a 28% participating interest in a SFA PSC over the DEWA Complex Cluster off the coast of Sarawak, Malaysia comprised of 12 shallow water gas discoveries near to infrastructure
· Farm-out to INPEX CORPORATION of a 42.5% participating interest in Block 2A in return for upfront cash consideration of $10 million, uncapped carry on its retained 10% interest through the exploration phase (including one firm and one contingent well) plus contingent $10 million in cash on discovery
Financial
· Year end 2024 cash of £2.8 million (2023: £3.7 million) which includes £1.8 million in net proceeds received from issue of 5.7 million ordinary shares in December 2024
· Cash balances substantially enhanced post period end by the receipt of Block 2A farm-out consideration and historic cost reimbursement of ~$11 million
· Group operating loss of £5.7 million (2023: £3.9 million) includes significant non-recurring costs of £2.4 million (2023: £0.4 million) largely associated with the strategic pivot to Southeast Asia
· Total loss for the year of £16.4 million (2023: £4.2 million) impacted by significant write-off (£10.8 million) associated with Norwegian joint venture sale
Outlook:
· Company anticipates continued progress on its existing portfolio with a well commitment on Block 2A (Kertang) during the summer and further progress on the DEWA development including resource sizes and a preferred gas evacuation option prior to year end
· Seascape Energy is actively pursuing opportunities to materially expanding its portfolio during 2025 with a particular focus on ground-floor initiatives which have already proven the potential to deliver significant shareholder value without dilution
· Following the farm-out of Block 2A, Seascape Energy is looking for opportunities to deploy its operating capabilities and nimble mindset to new assets
· Seascape Energy continues to believe Southeast Asia is one of the top global destinations for E&P investment given the crucial role the upstream industry plays in the region’s national economies and in delivering the forecast growth in energy demand, with the potential to displace coal fired power generation with natural gas
Investor Meet Company
In conjunction with the release of its full year results for the year ended 2024, James Menzies (Executive Chairman) and Nick Ingrassia (CEO) will provide a live presentation via Investor Meet Company on 27 May 2025, 10:00 BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 26 May 2025, 09:00 BST, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Seascape Energy Asia plc via:
https://www.investormeetcompany.com/seascape-energy-asia-plc/register-investor
Investors who already follow Seascape Energy on the Investor Meet Company platform will automatically be invited.
Nick Ingrassia, Chief Executive Officer, commented:
“It is hard to overstate what a pivotal year 2024 was for Seascape Energy as the business undertook a complete transformation; pivoting to Southeast Asia and undertaking several transactions which have resulted in a fully funded platform to pursue growth opportunities across the region.
The strategic pivot has also highlighted the Company’s competitive advantages, including the ability to leverage excellent long-term relationships and networks established across Southeast Asia by a revamped senior leadership team and board.
New business remains a priority for the Company in 2025 with Seascape actively pursuing growth opportunities in Malaysia and elsewhere with a particular focus on high-impact, ground-floor opportunities to materially expanding its portfolio.
We look forward to an exciting year ahead as we continue to build-out the Seascape platform.”
Nothing new here but it is useful for shareholders to get an update from the exciting management team at Seascape. All the old stuff in Norway has gone and the company is now fully concentrating on SE Asia where it has the makings of a cracking portfolio.
So far it has got its stake in the much admired block 2A and already farmed-out to Inpex for a very handy cash and carry giving them maximum opportunity with minimum exposure. It was awarded a 28% participating interest in the DEWA Complex Cluster offshore Sarawak which contains 12 shallow water gas discoveries near to infrastructure and gives Seascape more potential upside.
I know that the management are keen to do more deals, after all the plan is to become a full cycle energy company after all. They have the scope and perhaps more importantly, high quality friends in all the right places to go a long way and will need no second invitation.
We are coming up to a year since all the changes happened, at the time the shares were 7.5p and given how well I knew James Menzies I was happy to immediately upgrade the recommendation and with a Target price of 75p which other followers have since joined me at. Fully funded and hungry for action, Seascape is one of the places to be right now, surely there will be another exciting deal just around the corner.
Nostra Terra
The NTOG report is extensive and will provide plenty of light reading for the Bank Holiday weekend. But the key points are clear enough. When Paul Welch came in and stepped up to the CEO role he clearly knew that a review of the assets was necessary and the poorly performing ones sold or starved of investment.
The Pine Mills assets in East Texas have been selected for significant investment and is where I expect to see workovers waterflood activities and with further investment will justify the confidence of the CEO. NTOG is all about confidence in Paul Welch and for me he is worth backing, it looks an interesting one to have on the radar screen.
Nostra Terra has announced its final results for the year ended 31 December 2024. A copy of the Results, along with a Notice of AGM, is being posted to Shareholders and is available on the Company’s website, www.ntog.co.uk . The AGM will be held at the offices of Druces LLP at Salisbury House, London Wall, London EC2M 5PS at 10.00 a.m. on 20 June 2025. Extracts from the Results are set out below.
Chairman‘s Report
During 2024 crude oil prices including WTI, the benchmark against which Nostra Terra’s production is sold, continued on a generally falling trajectory. Russian oil production continues to find its way to market, often at discounted prices; both the volume and price effects of this and continued concerns over the health of the global economy are in part to blame for this price weakness.
Against this backdrop, Nostra Terra has put in place its new strategy and “stuck to the knitting” by divesting non-core assets in West Texas and focusing efforts on its existing core East Texas Pine Mills acreage and holds a 100% Working Interest. Over the year it has successfully reduced costs, identified commercially attractive opportunities to reactivate dormant wells and to upgrade infrastructure in Pine Mills and acted on these. In combination with these initiatives, a major workover programme at Pine Mills where we hold a 100% Working Interest transformed the Company’s cash flow position. Phase 1 of that delivered production increases that were funded during the 2nd half of 2024 by two equity placings totalling £950,000 before expenses and resulted in the Company becoming profitable at the operating and corporate levels during the 4th quarter of 2024 for the first time in many years. Further, post 2024 balance sheet year end, Phase 2 of the workover programme at Pine Mills was also successful and further increased production and was funded by a £500,000 placing in March 2025. We are now seeing a significant improvement in production volumes and well reliability as a result of these actions.
If the oil price continues to stay relatively low, or weakens further, the Company expects that a wide range of producing assets in and around the areas where we currently operate will come to market as other companies come under pressure to divest. We will actively consider these acquisition opportunities for commercial attractiveness and strategic fit, on a case by case basis. Given our high netback operations at both Pine Mills and Fouke, these assets are cash flow positive at oil prices above $25/barrel making the company fairly resilient to an extended low oil price environment.
Work has also been carried out on the Company’s geological and geophysical datasets to identify (as detailed in the CEO’s report below) new well locations, which we believe will offer the same attractive production and revenue profiles as the two existing Fouke wells.
In July 2024, we were pleased to announce the appointment of SP Angel as sole corporate broker and in September as the Company’s nominated advisor.
There were a number of board changes during 2024. In May, Matt Lofgran stepped down as CEO to concentrate on other interests. Paul Welch, already a non-executive director of Nostra Terra and a highly-experienced oil & gas professional, stepped into the role of CEO. The following month Jim Newman, one of our largest shareholders, and with a broad and deep knowledge of Texan oil & gas operations, joined the board as a non-executive director.
Post year end we announced that John Stafford, long-serving non-executive director, had stepped down as a director.
On behalf of the board of Nostra Terra I would like to thank all our shareholders for their continuing support throughout 2024 and as we progress through 2025.
Chief Executive Officer’s Report
In 2024, the Company focused on improving cash flow performance across all its assets. Assets that didn’t deliver sufficient cash flow were sold, and assets that did, such as Pine Mills, received additional investments.
Significant change occurred across the Company in 2024. On being appointed CEO, I immediately undertook a performance review of all our assets to determine what should be kept, sold, and invested in. As a result of this review, several West Texas assets were sold, South Texas assets were not invested in further, and our Pine Mills assets, where we hold a 100% Working Interest, were prioritised and invested in heavily.
We also examined the operating costs and reduced them by 25%. During the asset review, we identified 10 idle wellbores in Pine Mills that had the potential to be profitably returned to production. A transformative workover programme was undertaken, and five idle wells in Phase 1 were returned to production before the end of the year. This also included the restart of waterflood operations in the northern section of the field. These workovers, combined with the waterflood restart, increased oil production by circa 40% at Pine Mills and, combined with the Opex cost reductions, improved our profit per barrel by 50%. Following Phase 1, the company became profitable at the operating and corporate levels during the 4th quarter of 2024 for the first time in many years. Further, post 2024 balance sheet year-end, the commencement of Phase 2 of the workover programme at Pine Mills was also successful and further increased production and resulted in the Company’s total net oil production from all sources increasing to approximately 140 bopd.
During 2024, we also continued our technical efforts in the Fouke area, where we hold a 32.5% Working Interest. We identified a new development well location north of Fouke #1, which we believe contains another 300 MBO recoverable volume. Post-2024 balance sheet year-end, we presented the technical and economic merits of the location to our partners, who have now approved it. The well is subject to final planning and funding, and it is anticipated to be drilled in the late 3rd quarter of 2025 and, if successful, is expected to deliver initial production at the new maximum allowable field rate of 124 bopd.
After the technical review of the Fouke area concluded, the team focused on the behind-pipe potential in the remainder of the field, looking for by-passed or missed pay sands in existing well bores that had not been produced. This activity is ongoing and is expected to conclude at the end of the 3rd quarter of 2025.
Revenues for the year were $2,038,000, a 28% decrease from $2,816,000 in 2023. This reflects a combination of a 27% decrease in production sales and a deterioration in the commodity price environment (average $72.24 per barrel sold in 2024 compared to $73.38 in 2023). which has continued since the year end. Our production remains unhedged, which allows us to benefit from future recovery in the commodity environment. Gross profit before non-cash items (depreciation, depletion, and amortization) was $825,000, a reduction from $1,408,000 in 2023.
United States
All of Nostra Terra’s operations in the US target conventional reservoirs (i.e., not shale), typically with lower lifting costs and longer-life reserves than unconventional ones.
Area | 2024 Production (Barrels sold) | Percentage of Portfolio by sales |
East Texas | 24,677 | 87.8% |
West Texas | 3,311 | 11.8% |
South Texas | 124 | 0.4% |
East Texas (33- 100% WI)
Nostra Terra’s core asset is the Pine Mills Field (100% WI), which provides a baseline of low decline production of +/- 100 bopd. In 2024, production from the area accounted for 88% of the Company’s sales. After the first workover program, production increased by 40% in 2024 from this core producing area.
West Texas (50 – 100% WI)
In 2024, production from the area accounted for 11.8% of the Company‘s sales (50-75% WI). During 2024, the Coleman and Raschke assets were sold, and only the Grant asset was retained. The Grant asset produced at a flat rate of 18 bopd throughout 2024.
South Texas (100% WI)
The Caballos Creek asset, comprising two leases, did not perform well in 2024. The Company decided not to invest further in the asset and entertained various offers to sell it throughout the year. The asset continues to be produced on an infrequent basis while the search for a buyer continues. It is still an active divestiture candidate.
Senior Lending Facility
The facility is currently close to its maximum level of US$4,250,000. The cost of the facility has decreased over the year in line with the reduction in US Federal Reserve interest rates. Further reductions in interest rates are anticipated in 2025. Post Period, the term of the facility was extended for another three years on similar terms. The lending base is reviewed twice annually, and we anticipate its capacity to increase in line with the increased volumes and reserves that the Company has developed through its workover programme. This increased capacity can then be utilised to further grow the production base.
Outlook
The Company intends to continue to focus on reducing costs and generating positive cash flow from the existing asset base while focusing on increasing oil production and delivering growth. We intend to pursue organic growth opportunities from our existing asset base by looking for additional recompletion and workover well opportunities in the remainder of the Pine Mills field and plan to participate in drilling the next development location in the Fouke area. We will continue efforts to identify solutions for the non-core South Texas assets. We will continue our review of the many inorganic acquisition opportunities available to identify candidates that add complementary producing assets that fit with our existing West Texas asset position, our business model, and our growth strategy.
Thank you for your support. We look forward to continuing to identify and deliver additional value from the existing portfolio and growing the Company for the advantage of all our shareholders.
Paul Welch
Chief Executive Officer
22 May 2025
Strategic Report
The directors present their Strategic Report for Nostra Terra Oil and Gas Company plc (“the Company”) and its subsidiaries (collectively “the Group”) covering the year ended 31 December 2024.
Principal activity
The Group’s principal activity is the exploitation of hydrocarbon resources, focusing currently on the USA.
Our strategy
1 Grow Production and Reserves from Pine Mills
2 Increase cashflows
3 Make acquisitions that are accretive to shareholders
4 Use technical advances to extract further value from maturing assets
5 Develop strategic partnerships that allow the Company to leverage our existing assets to generate returns or create value through new opportunities
Our business model
Nostra Terra is focused on achieving profitable and sustainable growth within established hydrocarbon provinces.
We see the scope for sustained profitable growth throughout many well-established hydrocarbon systems. Our business model is to continue upgrading our exploration and production portfolio by identifying, screening, and investing in a diverse portfolio of upstream assets, targeting the most attractive opportunities. We focus on conventional reservoirs where assets have lower lifting costs and long-life reserves.
Review of business, future developments, trading outlook, and future strategy
The results for the year and the financial position of the Company and the Group are shown in the financial statements. They are also noted in the Chairman’s Report on page 2 and the Chief Executive Officer’s Report on page 3.
Growth opportunities
Nostra Terra is focused on existing, proven basins with conventional reservoirs in Texas, USA. The Company is also pursuing growth opportunities outside the USA.
Key Themes for 2025
· Commodity price weakness due to the economic uncertainties introduced as a result of current US Government policies.
· Continued growth in production from the Pine Mills asset.
· Development drilling in the Fouke area, followed by the review of a waterflood project in the area.
· Selective review of producing asset acquisition opportunities in the areas in which the Company operates.
· Efficient cash flow generation from our existing assets.
Key performance indicators
At this stage in the Company’s development, the directors regularly monitor key performance indicators primarily: production rates, operating costs, general administrative expenses cash flows and bank balances, which are tightly controlled.
2024 $’000 | 2023 $’000 | |
Cash and cash equivalents | 106 | 26 |
Administrative expenses | 1,077 | 870 |
BOE | BOE | |
Production (net) | 28,112 | 38,373 |
Principal risks and uncertainties
Managing Our Risk
Risk management is at the core of achieving our strategy and delivering long-term value to shareholders. The Board, its committees, and the executive team are actively engaged in setting the risk agenda and managing risks and opportunities of the Company. The Company maintains a Risk Register as a part of the Board’s fiduciary and oversight responsibilities.
Definition of Risk
A risk is defined here as a potential future event that may influence the achievement of business objectives. This includes both “upside” (opportunity) and “downside” (threat) risks. Threats and opportunities can come from various sources and can be directly related to the Company’s operational and commercial activities and support functions, or they can arise externally: from suppliers, regulators, competitors; from the economic environment or political climate.
Risk Management
The Company is acutely aware of oil and gas activity risks. Such risks range from global commercial risks, such as stock market volatility and commodity pricing, to geopolitical risks in terms of market access, tariffs and contractual relationships through to operational risks. In addressing the latter, ensuring the safety of our personnel and subcontracting staff and protecting the environment in which we work are paramount.
The key risk in development and production is the technical risk of not finding and producing sufficient hydrocarbons to be economic, While the US mid-continent is a proven hydrocarbon region and is seeing resurgence through the application of new drilling and well completion technologies, there are also environmental and economic risks, as there are in any hydrocarbon region. Further information relating to risk can be found on note 20 of these accounts.
Companies Act S.172
The Directors acknowledge their duty under s.172 of the Companies Act 2006 and consider that they have, individually and together, acted in the way that, in good faith, would most likely promote the Company’s success for the benefit of its members as a whole. In doing so, they have had regard (amongst other matters) to:
· the likely consequences of any decision in the long term. The Group’s long-term strategic objectives, including progress made during the year and principal risks to these objectives, are shown in the strategic report and the key performance indicators.
· the interests of the Company’s employees. Our employees are fundamental to us achieving our long-term strategic objectives.
· the impact of the Company’s operations on the community and the environment. The Group operates honestly and transparently. We consider the impact on the environment on our day-to-day operations and how we can minimise this.
· the desirability of the Company maintaining a reputation for high standards of business conduct. We will behave responsibly, operating within the high standard of business conduct and good corporate governance.
· the need to act fairly as between members of the Company. We will behave responsibly towards our shareholders and treat them fairly and equally so they may benefit from the successful delivery of our strategic objectives.
And finally…
One of the quintessential summer sports weekends in the calendar upcoming.
The most of all is the F1 Monaco Grand Prix in Monte Carlo and when quali tomorrow is more important than the race itself at 1400 hours on Sunday.
The test match continues at Trent Bridge, England declared this morning at 565 and as I write Zimbabwe are 210-5 with Brian Bennett age 21 getting his first test century.
Footy has the play-offs, the most valuable games for those involved. Tomorrow sees the Blades take on the Black Cats 15:01 hrs, Sunday in League 1 it’s the Addicks against the O’s at 13:01 and on Monday in League 2 Wimbledon take on Walsall.
And in Rugby Union it’s the Champions Cup Final in Cardiff tomorrow at 14:45 when the Saints play Bordeaux Begles.
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