Last checked at 4 Oct 2013 07:00
AIM: NTOG
4 October 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
$1.15m being released to Nostra Terra, additional sums pending
Further to the announcement on 12 September 2013, Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, announces that on 2 October 2013 it was determined by the Court that US$1.15 million of the $1.3 million deposited with the Court be released to Nostra Terra.
Following this successful outcome for the Company a further hearing will now take place later this year to determine any additional sums owed to Nostra Terra, including attorneys' fees, costs of collection, and reimbursement for operating expenses. Nostra Terra's liens will remain in place until final settlement is determined.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"It's great to be receiving this cash as it will fund additional scheduled drilling. Plans are already in place for additional drilling at Chisholm Trail throughout the remainder of the year, along with further development of the High Plains Prospect and additional prospects we will operate."
"These funds allow us to expand our drill programme at no cost to shareholders."
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.