Nostra Terra Regulatory News (NTOG)

AIM: NTOG

21 June 2013

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Placing

Nostra Terra, the AIM quoted oil and gas producer with assets in the USA, is pleased to announce that it has raised £750,000 before expenses by way of a placing of 187,500,000 new ordinary shares of 0.1p each in the capital of the Company ("new Ordinary Shares") at 0.40 pence ("Placing Price") per new Ordinary Share (the "Placing"). The Placing was undertaken with existing and new investors.

The net proceeds of the Placing, which was arranged at a discount of just 10% to the underlying share price at the time and over 11% higher than the Company's last placing in September 2012, will be utilised in the drilling of further wells in the Oklahoma based Chisholm Trail Prospect with a portion going towards leasing in the High Plains Prospect in Texas.

The Hunton Limestone play, where the Chisholm Trail Prospect is located, continues to attract investment with companies established in the play accelerating their development plans and others entering or trying to enter the play. The Directors believe this, combined with 'forced pooling', is increasing the pace of development significantly.

Following positive results in the High Plains Prospect, which led to the Company increasing its stake to 20%, Nostra Terra has now begun reprocessing the proprietary 3D seismic data. It is anticipated that leasing will commence during the second half of this year. This should lead to the generation of several prospects, each with multiple drilling locations.

Collection of the Richfield Judgment is progressing and the Board looks forward to imminent collection of either cash and/or producing assets.

The 187,500,000 new Ordinary Shares to be issued pursuant to the placing will rank pari passu in all respects with the existing issued ordinary share capital of the Company. Application will be made for the new Ordinary Shares to be admitted for trading on AIM and trading is expected to commence on 15 July 2013.

Following the Placing, the issued share capital of the Company will increase to 2,776,211,610. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules (as applied to the Company by AIM Rule 17).

Matt Lofgran, Chief Executive Officer of Nostra Terra, said:

"We have seen increased investment activity in the Chisholm Trail area by existing and new players and felt it prudent to take up the offer of additional funds from institutional and other investors. As we surpassed the important milestone of break even on an operational basis at the beginning of this year, as well as record production, these institutional investors are backing our further success knowing that our overheads are covered."

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

XCAP Securities plc (Broker)

Jon Belliss / Halimah Hussain Telephone: +44 (0)20 7101 7070

Lothbury Financial Services Limited

Gary Middleton / Michael Padley Telephone: +44 (0)20 7868 2010