NOSTRA TERRA OIL AND GAS COMPANY PLC
("Nostra Terra", "NTOG" or the "Company")
Placing, Development of Bloom initiated, Operations update
3 December 2009
AIM Symbol: NTOG
Nostra Terra, the AIM-quoted oil and gas company, is pleased to announce:
· The placing of 318,500,000 new ordinary shares raising £3.185 million.
The funds will be used primarily to develop the Bloom property and will
also enable further acquisitions as and when suitable opportunities arise.
· Updates on Boxberger and Hoffman
Placing
Nostra Terra is pleased to announce that it has completed a placing of
318,500,000 new ordinary 0.1p shares in the Company (the 'Placing Shares') at a
price of 1p per share, raising £3.185 million before expenses (the 'Placing').
Application has been made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM (`Admission'). The Placing Shares will rank pari
passu in all respects with the existing ordinary shares. The Placing is
conditional only on Admission and it is expected that dealings in the Placing
Shares on AIM will commence on 8 December 2009.
Following the issue and allotment of the Placing Shares the Company will have
1,549,600,913 ordinary shares of 0.1p each in issue.
Use of Proceeds
Bloom Property Development
The final acquisition payment for the Bloom property was met on 15 November
2009. The initial development of the Bloom property, which is currently
expected to be completed during the first half of 2010, will be funded from the
Placing. There are nine production wells and two salt-water disposal wells at
the Bloom property, located in Russell County, Kansas. Under the terms of the
joint venture between NTOG and Hewitt Petroleum, Inc., NTOG will receive 75% of
the net revenues from the Bloom property until its actual costs have been
repaid, thereafter 50%.
Fieldwork on Bloom Property
Production operations are expected to commence on the Bloom property in the next
four to eight weeks. This will be in addition to the existing rework program
currently underway at the Boxberger and Hoffman leases, detailed below.
Additional Funds
In addition to the Bloom property, the proceeds of the Placing will be applied
to the Company's working capital requirements and will also enable NTOG to make
further acquisitions as and when suitable opportunities arise.
Operational Update
Boxberger
Further to NTOG's announcement of 30 October 2009, development work on the first
of several wells is now complete and production operations are anticipated to
commence by the end of 2009 once the field electrical facilities have been
upgraded by the local power company. As a consequence of the multi-zone
completion undertaken on the initial well, where two new lower zones were
discovered, the Company has completed a detailed analysis of the reservoir
dynamics to ascertain the best approach to adopt in further field operations.
This has resulted in the redesign of pumps and other equipment to optimise
operations. In addition to completing the first production well, a salt-water
disposal well has also been completed and licensed. Details of flow rates will
follow once production has stabilized.
Hoffman
Work is progressing on two production wells and one injection/saltwater disposal
well on the Hoffman property and two workover rigs having been on site for the
last two weeks. It is anticipated that production will begin upon final
disposal licensing and completion of the saltwater disposal and production tank
facilities that are scheduled to be completed in early Q1 2010.
Matt Lofgran, CEO of Nostra Terra said "We have now funded development
operations on the third US property in the Nostra Terra portfolio and are in the
process of establishing a diversified oil production company covering several
different fields with multiple objectives. Over the past five months we've
transformed the Company, by building a foundation in an area of low political
risk with assets of low geological risk, and are now positioned for growth.
Development is underway on the first two properties and will commence shortly on
the third property, the Bloom field. Nostra Terra, with its JV partner Hewitt
Petroleum, Inc., now owns 28 wells (including at least four salt water disposal
wells) that are funded through initial operations and at various stages of being
developed".
Further announcements on progress at the properties will be made in due course
and are available automatically by email to those who register at
www.ntog.co.uk.
For further information contact:
Nostra Terra Oil and Gas Company plc Tel: +1 480 993 8933
Matt Lofgran, CEO
Blomfield Corporate Finance Ltd Tel: +44 (0)20 7444 0800
Peter Trevelyan-Clark/Ben Jeynes
Alexander David Securities Ltd Tel: +44 (0)20 7448 9820
David Scott/Nick Bealer
Note to Editors:
Nostra Terra Oil & Gas Company plc (AIM: NTOG) is an emerging oil and gas
exploration and production company with newly acquired assets in established
producing regions within the US mid-continent.
Hoffman
Nostra Terra holds a 25 per cent working interest in five production wells and
one salt water disposal well on the Hoffman lease, located in Barton County and
Russell County, Kansas.
Bloom
Nostra Terra holds a 50 per cent working interest in nine production wells and
two salt water disposal wells on the Bloom lease, located in Russell County,
Kansas.
Boxberger
Nostra Terra holds a 50 per cent working interest in eleven wells, including at
least one salt water disposal well, on the Boxberger property, located in
Russell County, Kansas.
Koelsch (option)
Nostra Terra also has an option to purchase from HPI - 50 per cent working
interest in two production wells and one salt water disposal well in the
Koelsch lease, also located in Strafford County, Kansas.
Ukraine
Nostra Terra also holds an interest in a license to further explore and develop
the onshore Oktyabrskoe oil field in Ukraine. The advanced recovery technology
which the Company and its joint venture partner are exploiting in the US mid-
continent may eventually be used to enhance the economic viability of this
Ukrainian reservoir but rapid and profitable development of its US business is
now Nostra Terra's primary focus.
For more information please visit: www.ntog.co.uk