Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce it has secured a hedging facility with BP Energy Company, part of the BP plc group.
Nostra Terra intends to use the hedging facility in conjunction with a senior debt facility to fund development of the Company's assets. The hedging facility can be used for price protection, enabling Nostra Terra to access greater working capital in a non-dilutive manner.
Nostra Terra currently has a $25,000,000 senior facility, which is in good standing, with Texas Capital Bank. The Company is also currently in discussions with a number of additional providers to ensure it obtains the best lending terms.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"I am very happy to report we have secured a hedging facility with a counterparty as respected as BP Energy Company. This is a significant endorsement of both Nostra Terra's strategy and asset portfolio.
This is a tangible step forward for the Company and I am particularly pleased to confirm funds released through the hedging facility will not carry any geographical restrictions. This means we will be able to deploy capital across our entire portfolio, in the USA and Egypt.
The next step is to confirm borrowing terms with a second senior facility provider. We are currently assessing a number of alternatives, with a view to securing the best terms for Nostra Terra. Despite the turbulence the industry has experienced over the last 3 years, we have always kept our existing facility in good standing. We believe this track record helps strengthen our negotiating position and I look forward to updating the market once we have concluded this process."
Visit source siteBPNosta TerraHedgingUnited StatesEgypt