Nostra Terra Regulatory News (NTOG)

AIM: NTOG 22 April 2014

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Quarterly Operations and Production Update

184% Increase in Annual Production

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a growing portfolio of assets in the USA, is pleased to provide an operational and production update.

Highlights

· 2013 annual production increase of 184%, exceeding guidance of 150% increase

· Production anticipated to increase to 150 boepd by summer 2014

· February 2014 net production averaged 66 boepd (net of royalties)

· Elected to participate in 3 additional wells during Q1 2014

· CT8 recorded a 10-day average initial production rate ("IPR") of 521 boepd and CT9 recorded a 10-day average IPR of 387 boepd

· CT14 (20.0% WI) has been drilled, and CT15 (11.62% WI) has been completed

· Company remains cash flow positive on an operational basis, with excess cash being re-invested in new wells

· US$25 million (non-dilutive) credit facility secured

· New adviser appointed

Monthly Production (Net)

Month Total Net* Production (BOE)

November 1,679

December 1,362

January 1,964

February 1,850

*Net to Nostra Terra's working interests, after royalties

(NRIs range from 78% to 81%)

Q1 2014 Operations Update

Since the last Quarterly Operations Update on 13 January 2014 (for Q4 2013), the Company has elected to participate in 3 additional wells (CT13-CT15) in the Hunton Limestone formation where the Company has experienced repeated drilling success. Nostra Terra has a material interest in two of these wells, the Curly 1-26H (CT15) well (11.62% WI), and the Gant 1-22H (CT14) well (20.0% WI). The Bugg (CT11, 3.55% WI) is now producing, the Curly well is being put into production, and drilling has finished at the Gant well where the hydraulic fracturing operation is expected to take place shortly. The Company anticipates updating shareholders on production soon.

During the first quarter, the Company established its first revolving Credit Facility with Texas Capital Bank. The facility has a very low interest rate of 4.25%, and is an attractive method of funding growth in a manner that is non-dilutive to shareholders. The Company will use this in addition to free cash flow to grow production and revenues at a quicker pace.

Outlook

We remain cash flow positive on an operational basis with free cash flow being reinvested in the drilling of new wells.  

New wells continue to be planned and proposed by multiple operators in the Chisholm Trail Prospect.

A drilling location within the High Plains Prospect has been identified and leasing is nearly complete. The partnership anticipates that a rig will move in to drill in Q3-14. If successful, the test well will be followed by an on-going leasing program within the 43,000 acre Area of Mutual Interest.

The company web site www.ntog.co.uk has been updated.

Alden McCall, Chief Operating Officer of Nostra Terra, stated:

"Nostra Terra and its partners continue to enjoy the results of an extensive series of successful and highly economic wells. A major factor in our continued success is our partnership with Ward Petroleum. Its highly efficient and professional operation continues to demonstrate why it is so well respected in our industry."

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

"I'm very pleased to be able to show that our production continues to grow, surpassing guidance for the previous year and we remain focused on increasing production and revenues further into 2014. We've de-risked the company by producing from a growing portfolio of wells and by establishing excellent working partnerships within our areas of operations. Two new wells are now in production and a third that has just finished drilling will be completed shortly. As is usual with Nostra Terra we are awaiting average production rates following the Initial Production and we anticipate updating shareholders on production rates soon. 

The Chisholm Trail prospect is providing a strong foundation for the Company and we remain cash flow positive on an operational basis. We are reinvesting free cash flow into additional leases and wells, and anticipate this will accelerate following the increase in production and revenues from the new wells that are coming on stream. We also continue to evaluate new opportunities from which to grow our portfolio even further."

The technical information within this announcement has been reviewed by Alden McCall, the Company's Chief Operating Officer, a Certified Petroleum Geologist and a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.

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

Northland Capital Partners Ltd

(Nominated Adviser) 

Matthew Johnson / Lauren Kettle   Telephone: +44 (0)20 7382 1100

Hume Capital Securities plc

(Broker)

Jon Belliss / Abigail Wayne Telephone: +44 (0)20 3693 1470

Lothbury Financial Services Ltd

Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620