Nostra Terra Oil & GasNTOG

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Description:

Nostra Terra Oil & Gas plc ('NTOG' or 'the Company') is embarking on a new strategy with exploration and producing assets in Kansas and Oklahoma. The Company is using its technology and partnering with an established operator, thereby taking advantage of existing infrastructure and keeping overhead low. NTOG is focusing away from high political risk areas and concentrating on infill reserves thereby reducing geological risk.

Comment:

The Board is committed to a new strategy and has appointed Matt Lofgran, with previous experience in Robson Energy as the new CEO. The Company announced, on 13th July 2009, that it had entered into definitive agreements with Hewitt Petroleum, Inc. ("HPI") for the purchase and exploration of three properties in Kansas, USA.

Hoffman Leases located in Kansas and Oklahoma:

• Low political risk
• Low geological risk
  • Infill reserves
  • Profitable at US$18
  • Acquire assets at depressed prices
• Partner with existing established operator
• Immediate production
• Additional reserves
  • Reserves*
  • Proven 642,000 barrels of oil
  'Probable reserves up to 3 times proven' (Note: The probable reserves are company estimates).

NEW DEALS August 2009

• The acquisition of a 50 per cent interest in ten production wells and one salt water disposal well (together the "Boxberger Wells") located in the Boxberger field, Russell County, Kansas, USA (the "Boxberger Field");
• The Reserve Report for the Boxberger property
• 6-month extension on funding development of other properties; and
• Field work on the Boxberger property
• A placing of 200,000,000 new ordinary shares of 0.1p each ("Ordinary Shares") at a price of 0.15p each, raising £300,000, before expenses.

Reserves
The reserves for the Boxberger Field are estimated to be sufficient to produce 1,687,000 barrels oil over the first 15 years of production. These are categorized as proven, producing. NTOG has a 50% interest

In connection with the Boxberger Field transaction, NTOG has secured a 6-month extension on all development funding commitments for the previously acquired properties announced on 15 July 2009, namely the Koelsch Field, the Hoffman Field and the Bloom Field. This will allow NTOG to focus initial efforts on the Boxberger Field - with the intention of delivering revenues sooner.