Last checked at 1 Jul 2013 07:00
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Further re Richfield Judgment
Nostra Terra (AIM: NTOG), the AIM quoted oil and gas producer with a growing portfolio of horizontal and vertical drilling projects in the USA, is pleased to announce progress on the collection of the Richfield Judgment, as described in the announcement of 24 May 2013.
On 27 June, 2013 certain of the assets securing the Note Richfield defaulted upon, resulting in a Judgment in favour of Nostra Terra, were sold at a Sheriff's foreclosure sale in Russell County, Kansas. Nostra Terra submitted the winning bids for the cumulative amount of US$165,000.
The assets are known locally as the Furthmyer #1 well (West), the Neidenthal #1 well (South), two producing oil wells, their associated production equipment, facilities and leases, along with a common Salt Water Disposal well, the Furthmyer #11. Current production on these leases averages approximately 6 barrels of production per day (gross).
Once the sale is confirmed by the Court the US$165,000 bid will be applied to reduce the balance of the outstanding Judgment granted in favor of Nostra Terra, which is currently in excess of US$1.5 million
Nostra Terra will continue to aggressively pursue collection of the remainder of the Richfield judgment. Further updates will be made in due course.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We're delighted with this outcome. We've acquired producing assets, which we already operate, to add to our growing portfolio, increasing both cash flow and reserves."
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) 207 408 4090
XCAP Securities plc (Broker)
Jon Belliss / Halimah Hussain Telephone: +44 (0) 207 101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0) 203 440 7621
Notes:
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 2 April 2013, a judgment was entered in favour of Nostra Terra on its claims against Richfield for approximately $1,500,000, plus attorneys' fees and collection costs, for an amount still to be determined by the court.