Last checked at 
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC shares dropped on Thursday morning after the company said it has formally completed the USD2.1 million sale of the stake it held in the Chisholm Trail prospect in the US, revealing the buyer was Staghorn Petroleum LLC.
Nostra Terra shares were down 12% to 1.53 pence per share on Thursday morning.
"This sale comes at an important time for Nostra Terra. The proceeds from the sale allow the board to advance its plans for introducing new assets to the portfolio with larger working interests," said Chief Executive Matt Lofgran.
Nostra Terra could not previously unveil the purchaser as it was bound by commercial confidentiality, but that has now been lifted as the deal has been completed, signalling Nostra Terra's exit from the prospect lying in a portion of the Anadarko basin of Central Oklahoma.
"Nostra Terra intends to deploy the net proceeds from the sale to accelerate its growth plans and for general working capital purposes. Nostra Terra continues to evaluate a number of opportunities across different geographic regions, particularly North America and Egypt," said the company.
In addition, the company said it will continue to suspend publishing quarterly reports as part of its cost cutting initiative and wider rationalisation of the business, cutting the cost of the paperwork and regulatory filing by returning to the traditional method of updating shareholders using interim and annual reports.
"The previous quarterly reporting policy was at the board's discretion and is not required pursuant to the AIM Rules. The board feel that management time is better directed towards evaluating and securing new assets for Nostra Terra, as it continues to implement its growth strategy and deliver shareholder value over the medium term," the company said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
