Last checked at 12 Sep 2013 13:47
AIM: NTOG
12 September 2013
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Richfield deposits $1.3m with Court
Further to the announcement of 10 September 2013, Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, provides the following update.
On 2 April 2013, a judgment was entered in favour of Nostra Terra on its claims against Richfield Oil & Gas Company ("Richfield") for approximately $1,500,000, plus continuing interest, attorneys' fees and collection costs all in an amount still to be determined by the court.
On 6 September 2013, Richfield filed a Motion with the Court advising of its intent to pay into the Court approximately $1.3 Million in partial satisfaction of the judgment and to seek an Order to cancel the upcoming Sheriff's Sale of certain oil and gas interests owned by Richfield in Russell County, Kansas and staying further collection efforts by Nostra Terra until a final determination is made by the Court on whether additional sums are owed to Nostra Terra (the "Motion").
On 10 September 2013, the Court held a hearing, at which it granted the Motion. Nostra Terra has confirmed that following the Motion the funds have been deposited with the Court and, as such, the Sheriff's Sale scheduled to occur on 12 September 2013 and all outstanding writs of execution have been cancelled.
A hearing is scheduled for 1 October 2013 to determine any additional sums owed to Nostra Terra, including attorneys' fees, costs of collection, and reimbursement for operating expenses incurred by Nostra Terra while operating certain Russell County leases throughout the duration of this matter. It is expected following this hearing, that the Court will order distribution of the funds paid into the Court. In addition, if the Court determines that there are additional sums owed to Nostra Terra, Richfield will have fourteen days thereafter to satisfy the judgment in full or the stay on Nostra Terra's collection efforts will end. The Court further ordered that Richfield is prohibited from transferring any assets outside of the Court's jurisdiction or encumbering such assets in any way.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We are pleased to see this situation coming to a satisfactory conclusion for Nostra Terra. Nostra has been building a strong portfolio of assets and the $1.3 million cash, when received, puts us in an even stronger cash position which will help us further expand our asset base."
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.