Nostra Terra Regulatory News (NTOG)

15 October 2015

Nostra Terra Oil and Gas PLC

("Nostra Terra" or the "Company")

Acquisition Completion

Nostra Terra (AIM:NTOG), an oil and gas exploration and production company with a growing portfolio of producing and exploration prospects, in a newly-formed joint venture ("JVCO") with Independent Resources plc ("Independent Resources"), is pleased to announce the completion of the acquisition of the 50 per cent. interest in the East Ghazalat concession in Egypt from TransGlobe Petroleum International Inc, a wholly owned subsidiary of TransGlobe Energy Corporation ("TransGlobe or the Vendor") for US$3.5 million (the "Acquisition"), as first announced on 6 October 2015.

Highlights

· Current gross production from East Ghazalat is approximately 880 barrels of oil per day (bopd), based on average June 2015 production levels (440 bopd net to JVCO).

· Gross Company 2P reserves attributable to the 50 per cent. interest acquired ("Acquired Interest") at the effective date of 30 June 2015 were estimated at 1,008,922 barrels of oil (DeGolyer and MacNaughton Canada Limited estimate).

· Implied acquisition cost of US$3.47 per barrel of 2P oil reserves and US$7,955 per barrel of daily oil production attributable to the Acquired Interest.

· The concession also includes two gas discoveries mentioned by TransGlobe on 28 August 2013 and 3 September 2014 in North Dabaa 1X and North Dabaa 2X respectively. North Dabaa 1X tested at an average rate of 16 million cubic feet per day (MMCFD) and 1,620 barrels per day of condensate. North Dabaa 2X tested at 18.7 MMCFD and 542 barrels per day of condensate. No reserves have been attributed for these discoveries.

· Operated by North Petroleum, a wholly-owned subsidiary of China ZhenHua Oil Co, Ltd, a Chinese state-owned oil company.

· New drilling locations identified for additional wells.

· The Vendor has agreed to issue a loan note for US$2.5 million and the remaining cash element due has been funded from cash and an existing third party loan facility arranged by Nostra Terra. No shares have been issued by either Nostra Terra or Independent Resources in conjunction with the Acquisition. The loan note bears interest at 10 per. cent per annum payable on a semi-annual basis and must be redeemed by JVCO by 30 September 2017.

The effective date of the closing is 1 July 2015. The immediate priorities of JVCO are to improve operating margins through cost reduction initiatives, and to implement further reserve enhancement opportunities in a disciplined and rigorous manner.

In conjunction with Independent Resources, we continue through JVCO to appraise a number of other acquisition opportunities in the region. We look forward to updating shareholders on further progress.

Matt Lofgran, CEO of Nostra Terra Oil & Gas, commented:

"I'm very pleased to announce the closing of our first acquisition outside of the USA, with Independent Resources, and the start of a diversified approach to increased levels of production and cash generation. The asset provides an opportunity to measurably impact on cash flows. We look forward to an exciting future with Independent Resources as there are many opportunities which we believe we can now consider.

We were able to obtain financing from the seller on very good terms while keeping the acquisition non-dilutive to shareholders. While we continue to look at other potential assets to acquire, our operational team is in the first instance keenly focused on improving production and margins in this field."

Alden McCall, Chief Operating Officer of Nostra Terra, has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009. Mr McCall is a Certified Petroleum Geologist and is a member of the American Association of Petroleum Geologists, the Society of Petroleum Engineers, the Oklahoma Geological Society, the Fort Worth Geological Society and the Houston Geological Society.

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

Sanlam Securities UK Limited (Nominated Adviser & Broker)

Lindsay Mair/James Thomas Telephone: +44 (0)20 7628 2200

Walbrook PR Ltd (Media Relations)

Gary Middleton/Nick Rome Telephone: +44 (0)20 7933 8797

Notes to Editors:

Concession overview

The East Ghazalat Concession (the "Concession") is located in the Western Desert region of Egypt, approximately 240 kilometres southwest of the city of Cairo in a platform region over the Sharib-Sheiba high which covers an area of approximately 626 square kilometres. Field facilities are located 130 km south-south-west of El Alamein, a city located on the Mediterranean coast 106 km west of Alexandria.

The Concession is limited to the north by the southwestern extension of the Alamein Basin. The southern part of the concession is situated in the Abu Gharadig and Margin Basins, the former of which holds some of the greatest hydrocarbon potential in the Western Desert of Egypt.

The Concession is operated by North Petroleum, a subsidiary of China ZhenHua Oil Co. Ltd, a Chinese state owned oil company. It consists of two development licences covering approximately 62 km2.

There are currently six wells in production.