Last checked at 4 Mar 2013 07:00
AIM: NTOG
4 March 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
$1.5m Judgment to be Awarded to Nostra Terra
Further to the announcement on 5 February, Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to provide an update on the Richfield Oil & Gas Company ("Richfield") Note (as defined below).
On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the "Note") which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012. The Note is secured against certain producing leases located in Kansas and certain non-producing leases located in Utah. Nostra Terra has been operating some of the producing leases in Kansas during the foreclosure process.
On 1 February 2012, Nostra Terra began foreclosing on the Note and a hearing took place on 1 March 2013 on Nostra Terra's motion for partial summary judgment ("Motion"). The Motion went unopposed. The court has directed Nostra Terra's counsel to prepare an order granting the Motion and granting judgment in favour of the Company on its claims, which is expected to be on file later this month. The judgment will award Nostra in excess of US$1,500,000 in principal and interest, plus an additional amount to be determined to cover the costs of collection.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We're happy to finally reach this conclusion. As recently announced, Nostra Terra achieved a major milestone, surpassing break even on an operational basis. The funds collected from Richfield will help accelerate our existing drilling program where we anticipate increasing our production levels significantly this year."
For further information, visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO
mlofgran@ntog.co.uk Telephone: +1 480 993 8933
Shore Capital & Corporate Limited (Nominated Adviser)
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0)20 7408 4090
Alexander David Securities Ltd (Joint Broker)
David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812
XCAP Securities plc (Joint Broker)
Jon Belliss / Halimah Hussain Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7621