Nostra Terra Regulatory News (NTOG)

05 April 2017

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Texas Assets Reserves Report

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce the results of its Independent Reserves Report (the "Report") for the Pine Mills oil field and Permian Basin assets (collectively referred to as the "Texas assets").

Highlights:

· Total net proven reserves of 481,350 barrels of oil ("481.35 Mbbl") attributable to Nostra Terra across its Texas assets:

o 285Mbbl of net proven reserves at Pine Mills

o 196Mbbl of net proven reserves at the Permian Basin assets (of which 180Mbbl is Proven Undeveloped);

· US$4.57m NPV10 valuation assigned to Nostra Terra's Texas assets:

o US$3.53m NPV10 valuation assigned to Nostra Terra's 87.5% stake in Pine Mills (a 22% increase since 01 December 2016 on a like for like basis)

o US$1.04m NPV10 valuation assigned to Nostra Terra's Permian Basin assets;

· Significant improvement in NPV10 at Pine Mills as a result of operational cost reduction; and

· Further increases anticipated to net proven reserves and NPV valuation on completion of foreclosure proceedings to take Nostra Terra's Working Interest in Pine Mills to 100%.

Independent Reserves Report

Nostra Terra commissioned the Report to assess the economics of its portfolio of Texas assets. The Texas assets include Nostra Terra's 87.5% Working Interest in the Pine Mills oil field ("Pine Mills") and its 57.2% to 75% Working Interests in the leases located in the Permian Basin, Mitchell County ("Permian Basin assets").

The Report was compiled by Booth Reeves, a Texas based Petroleum Engineer, using the standards set by The Petroleum Resources Management, which is accepted by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers. The definitions can be found at www.spe.org/industry/docs/Petroleum_Resources_Management_System_2007.pdf.

The reserves were estimated using decline curve analysis where production trends have been established. When trends were not established, reserves were estimated by volumetric analysis, research of analogous reservoirs, or a combination of both. The maximum reserves life assigned to the wells is 40 years. Booth Reeves has applied a "NYMEX Prices Strip" to estimated hydrocarbon production, which is standard industry practice for these types of wells in the USA.

The independent report adopts a conservative approach in assessing the reserves, focusing primarily on Proven Reserves (1P). The Report does not include the potential for Proven Undeveloped ("PUDS") for Pine Mills (although it does for the Permian Basin assets). There is potential for Probable and Possible Reserves to be evaluated in the future on all the Texas assets. All of Proved Developed Producing ("PDP"), Proved Developed Non-producing ("PDNP") and PUDS are considered to be Proven Reserves (1P) under the Petroleum Resources Management System.

In summary Nostra Terra's certified 1P net reserves across its Texas assets are 481Mbbl. The NPV10 valuation assigned to these reserves is US$4.57m (net of costs, including royalties).

The Report's key findings in tabular form are:

As at 1 March 2017:

Reserves, Valuation and Development of Pine Mills

Net proven reserves for Pine Mills are 285Mbbl of oil. The NPV10 valuation assigned to these reserves is US$3.53m, representing an increase of 22% since 01 December 2016 (on a like for like basis). This increase in value has been driven primarily by operational improvements Nostra Terra has made since assuming the operatorship of Pine Mills.

The operational improvements include Nostra Terra's efficient cost cutting initiative and workover programme, both of which have already yielded meaningful results. This has significantly increased Nostra Terra's net cash flow generation.

Additionally since the year-end Nostra Terra acquired a further 7.5% working interest in Pine Mills, along with a secured receivable, which the Company believes will result in it taking 100% ownership of the asset in the coming weeks. This action will generate a further increase in value assigned to Pine Mills with no further funds being spent.

Beyond this Nostra Terra has also identified further potential development upside at Pine Mills. The Company believes this can be achieved through reactivation of existing drilled wells, development drilling of proven locations and exploration drilling.

Reserves, Valuation and Development of the Permian Basin assets

At Nostra Terra's Permian Basin assets, the Report shows net proven reserves of 196Mbbl of oil. The NPV10 valuation assigned to these reserves is US$1.04m.

Nostra Terra has made two acquisitions in the Permian Basin and performed initial workovers. All the interests in the Permian Basin assets are "Held By Production" ("HBP"), meaning the Company can decide on the pace of development. Nostra Terra expects to increase the value of its Permian Basin assets through additional workovers, drilling new wells and making other operational improvements.

Nostra Terra will continue to perform further workovers and reactivations of existing drilled wells to take place in 2017. New wells may also be drilled to improve overall production and increase reserves.

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

"We've been excited about the progress we've been making at Nostra since the end of last year. Our approach has been to acquire oil-producing assets for the company, which we believed our experienced operational team could add significant value to through targeted workover programmes, cost cutting initiatives and other development work. The publication of today's Independent Reserves Report is vindication of this strategy.

Over the course of the three months since the start of last December we have booked reserves at our Permian Basin assets and increased Nostra's proven oil reserves at Pine Mills through increasing our interest to 87.5% and increased the NPV10 valuation. We've achieved this without diluting shareholders, using internally generated funds. In a challenging environment we've delivered all our short term targets for these assets and I would like to thank our dedicated operational team, which has made this possible through such hard work.

Nostra Terra is now well positioned to continue growing at its own pace as conditions allow. In the near future we expect to complete the foreclosure on the remaining 12.5% Working Interest in Pine Mills, further adding value to the business.

Beyond acquiring 100% of Pine Mills, we have in place a schedule for reactivation of existing drilled wells to take place in 2017 across our Texas assets. If the market for oil remains robust and builds on recent gains, Nostra Terra expects to be able to carry out a more extensive drilling campaign to improve overall production and increase reserves. I look forward to providing further updates to the market."

Competent Person Disclosure

Christian Snyder, a Petroleum Engineer at Nostra Terra with over 20 years relevant experience in the oil industry, has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009. Mr. Snyder is a member of the Society of Petroleum Engineers.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, visit www.ntog.co.uk or contact:

Glossary

Mbbl: Thousand barrels

NPV10: the Net Present Value calculated at a discount rate of 10 per cent.

Proved Reserves (1P): those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate.

Probable reserves: those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves

Possible reserves: those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves