Nostra Terra Oil & Gas Co PLC on Friday said the company narrowed its loss despite a slump in revenue last year.
The Texas, US-focused exploration company narrowed pretax loss in 2023 to $472,000 from $546,000 the previous year.
This occurred despite revenue falling 30% to $2.8 million from $4.0 million.
In 2022, costs were inflated by a well impairment charge totalling $897,000.
With oil prices remaining largely flat over the year, management decided to focus on cost controls and avoided undergoing any additional exploration work.
The company did benefit from a favourable ruling from the Texas Railroad Commission relating to the Fouke Field, which approved the increase of allowable production rates from 82 barrels of oil per day to 124bopd.
After succeeding Matt Lofgran earlier this month, newly appointed Chief Executive Officer Paul Welch expressed his intention to reduce the company’s level of debt after non-current borrowings rose 11% to $4.3 million from $3.9 million.
Looking ahead, Welch said: ‘The company intends to focus on reducing costs and generating cash flow from its existing asset base. Additionally, we intend to complete our technical studies and asset reviews and take the appropriate actions to improve the performance of our assets.’
In the current year, the company said it will likely make changes to its existing portfolio in an effort to improve profitability.
Nostra Terra shares were down 13% to 0.10 pence each in London on Friday afternoon.
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