Last checked at 10 Sep 2013 10:17
AIM: NTOG
10 September 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Richfield Judgment - Update
Further to the announcement of 3 September 2013, Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, notes the press release issued by Richfield Oil & Gas Company ("Richfield") on 9 September 2013 and understands that a hearing is scheduled for 4 p.m. CST (10 p.m. UK Time) today at which the proposed Sheriff's Sale auction of the six leases in Russell County, Kansas will be considered and may be canceled in recognition of receipt of full or partial settlement of the judgment against Richfield to the Company.
To date there has been no ruling from the Court cancelling the Sheriff's Sale nor has the Company received the remaining balance of the judgment.
A further announcement will be made in due course.
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 Telephone: +44 (0)20 7101 7070
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620
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.
In May Nostra Terra announced receiving an initial $215,000 from the judgement
Nostra Terra has seen better than expected production success in Oklahoma with its Chisholm trail prospect propelling the company over the break even stage for the first time earlier this year.