24 May 2013 07:00

Â
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Â
Initial $200,000 Received from Richfield Judgement
Â
Further to the announcement on 4 March, Nostra Terra, the AIM quoted oil and gas producer with a portfolio of assets in the USA, is pleased to provide an update on the Richfield Oil & Gas Company ("Richfield") Note (as defined below).
Â
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.
Â
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.
Â
In addition to the judgment against Richfield awarding Nostra Terra over $1.5m plus costs, the court has ordered that certain production proceeds owed to Richfield by National Cooperative Refinery Association totaling approximately $215,000Â be paid to Nostra, as part of the funds due to Nostra Terra under the judgment. A portion of the funds will be applied against operating expenses already incurred by Nostra Terra for operating the leases. Those proceeds have now been received.
Â
Nostra Terra will continue collection of the Richfield judgment. Further updates will be made in due course.
Â
Â
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"These funds collected from Richfield will go towards our drilling program where we anticipate increasing our production levels significantly this year."
Â
Â
For further information, visit www.ntog.co.uk or contact:
Â
Nostra Terra Oil and Gas Company plc
Matt Lofgran, CEO
mlofgran@ntog.co.uk Telephone: +1 480 993 8933
Â
Shore Capital & Corporate Limited (Nominated Adviser)
Bidhi Bhoma / Toby Gibbs Telephone: +44 (0) 207 408 4090
Â
Alexander David Securities Ltd (Joint Broker)
David Scott / Bill Sharp Telephone: +44 (0) 207 448 9812
Â
XCAP Securities plc (Joint Broker)
Jon Belliss / Halimah Hussain Telephone: +44 (0) 207 101 7070
Â
Lothbury Financial Services Limited
Gary Middleton / Michael Padley Telephone: +44 (0) 203 440 7621
Â
Â