Nostra Terra O&G Co NTOG Operational Update

  Nostra Terra O&G Co (NTOG) - Operational Update

RNS Number : 3219P
Nostra Terra Oil & Gas Company PLC
23 October 2012


                                                               23 October 2012


                     Nostra Terra Oil and Gas Company plc

                      ("Nostra Terra" or the "Company")


            Amendment to Yorkville Agreements & Operations Update

Yorkville Arrangements

Nostra Terra, an AIM listed oil and  gas producer with assets in the USA,  has 
agreed to amend its standby equity distribution agreement (the "SEDA") with YA
Global Master SPV  Ltd ("Yorkville"),  so that individual  advances under  the 
SEDA may be aggregated in order to streamline the process of raising funds.

In connection with the amendment of  the SEDA, Nostra Terra's Chief  Executive 
Officer, Matt Lofgran  and Yorkville  have agreed to  modify the  arrangements 
relating to  the secured  loan  note (announced  on  29 June  2012)such  that 
155,000,000 of the 289,842,506 ordinary  shares previously secured by a  fixed 
charge shall now be loaned ("Loan Shares") to Yorkville in order to allow more
flexibility for the SEDA. The Loan  Shares have been released from the  fixed 
charge and transferred to Yorkville with immediate effect. Yorkville may  only 
sell the Loan Shares following  a request by Nostra  Terra under the terms  of 
the SEDA. The Loan Shares  will be redelivered by  Yorkville to Mr Lofgran  at 
the end of the Lending Agreement arrangement.

As a result of the  arrangement, Mr Lofgran's interest  in the Loan Shares  is 
now held by Yorkville, representing 6.31% of the Company's share capital.  Mr 
Lofgran retains a holding of 141,842,506 ordinary shares in the capital of the
Company, representing 5.77% of the Company's issued capital.

Chisholm Trail Prospect

Nostra Terra is also pleased to update  on the progress at the Chisholm  Trail 
Prospect. Drilling has now finished on both the first and second wells on the
prospect, (where the Company has a  0.47% working interest ("WI") and a  0.16% 
WI respectively). The  fractured stimulation and  completions for both  wells 
are scheduled to  take place  within the  coming weeks.  This procedure  takes 
place after drilling and logging have been completed and the drilling rig  has 
been moved away. 

In addition to these wells,  Nostra Terra owns a  20% interest in the  overall 
Chisholm Trail Prospect,  with varying WIs  in each well,  and further  leases 
being taken. Two further wells are planned to be drilled during the  remainder 
of 2012,  with additional  wells  already being  planned  for early  2013  and 

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

"The changes in the SEDA better suit our leasing and acquisition program where
we're generating our  own prospects  with multi-pay  and multi-well  potential 
using 3D seismic to reduce risk. This amendment will be particularly efficient
when using the facility for paying  large numbers of small leasing  agreements 
such as is typical in the oil industry in the USA."

"We are  also pleased  with the  pace  of development  on the  Chisholm  Trail 
Prospect.  The  activity  level  is  increasing  in  and  around  this  highly 
productive project and we are delighted to have acquired a meaningful interest
with an early-mover advantage in the development of this greater play."

For further information, visit or contact:

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

Telephone: +1 480 993 8933

Shore Capital & Corporate Limited (Nominated Adviser)

Bidhi                               Bhoma/                                Toby 
Telephone: +44 (0)20 7408 4090

Alexander David Securities Ltd

David                     Scott                     /                     Bill 
Telephone: +44 (0)20 7448 9800

Lothbury Financial Services Limited

Gary                   Middleton                   /                   Michael 
Padley Telephone: +44 (0)20
7868 2010


In September 2012, Nostra Terra entered into an agreement with Ward  Petroleum 
for the Chisholm Trail Prospect,  a multi-well horizontal drilling project  in 
Oklahoma. The  prospect  area  is large  in  size  and a  leasing  program  is 
on-going. Nearby  drilling has  resulted  in several  wells that  produce  in 
excess of 200boepd after the first 30 days of "flush" production. Nostra Terra
owns a 20% interest in this  active program within which working interests  in 
the individual  wells  vary. Based  on  results from  neighbouring  wells,  we 
anticipate this prospect also has the potential to deliver rapid payouts  with 
continued strong production levels.

Ward Petroleum Corporation,  based in Enid  Oklahoma, was founded  in 1963  by 
LewWard, its  Chairman.  Mr. Ward  is  a past-President  of  the  Independent 
Producers Association of America (IPAA) and  is a respected member of the  oil 
producers' community of the  United States. Among  its industry honours,  Ward 
Petroleum has been listed in the top 100 fastest growing American companies by
Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business
magazine. Since its founding, Ward Petroleum has drilled more than 800  wells 
in the  Anadarko  and  Arkoma Basins,  some  as  deep as  22,000  feet.  Ward 
Petroleum operates nearly 350 wells in Oklahoma throughout both basins.

Oklahoma is the fifth  largest producing state in  the United States in  crude 
oil production. Despite its long history, it still produces about one  quarter 
of the peak rate that  was reached in 1927. The  state was the birthplace  for 
such commonly recognized corporate names as Halliburton, ConocoPhillips and J.
Paul Getty.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCZMMZGGFDGZZM -0- Oct/23/2012 10:30 GMT
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