Last checked at 24 May 2013 07:00
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Initial $200,000 Received from Richfield Judgement
Further to the announcement on 4 March, Nostra Terra, the AIM quoted oil and gas producer with a portfolio of assets 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 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.
In addition to the judgment against Richfield awarding Nostra Terra over $1.5m plus costs, the court has ordered that certain production proceeds owed to Richfield by National Cooperative Refinery Association totaling approximately $215,000 be paid to Nostra, as part of the funds due to Nostra Terra under the judgment. A portion of the funds will be applied against operating expenses already incurred by Nostra Terra for operating the leases. Those proceeds have now been received.
Nostra Terra will continue collection of the Richfield judgment. Further updates will be made in due course.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"These funds collected from Richfield will go towards our 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) 207 408 4090
Alexander David Securities Ltd (Joint Broker)
David Scott / Bill Sharp Telephone: +44 (0) 207 448 9812
XCAP Securities plc (Joint 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