Nostra Terra trims lifting costs at Pine Mills project in Texas

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Oil company Nostra Terra said it had reduced lifting costs at its Pine Mills project in Texas, helping to improve the company's cashflow.

Lifting costs at the project had fallen to around $16 per barrel, down from around $23 a barrel.

'The board has performed a thorough review of all aspects of the business, including all corporate and operational costs,' Nostra Terra said.

'As a result, further reductions in overhead costs have been achieved.'

The company also said that it had agreed an extension of a loan from Discovery Energy until 1 April 2022, bearing an interest rate of 10% per annum.

An initial payment of £10k has been paid to Discovery, with payments of £5k per month to be until 1 April 2022, with the balance outstanding due on or before that date.

'The structure was agreed with careful consideration of the group's cashflow requirements, in order to help the company achieve its immediate goal of reducing monthly costs as much as possible,' Nostra Terra said.

A fee of £24k was payable to Discovery for agreeing to reschedule the loans.

At 9:45am: (LON:NTOG) Nostra Terra Oil Gas Company PLC share price was 0p at 0.35p