Richfield Litigation Resolution

RNS Number : 9768V

Nostra Terra Oil & Gas Company PLC

19 December 2013

 



AIM: NTOG

19 December 2013

 Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Additional funds awarded to Nostra Terra

Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, announces that on 18 December, 2013, it was determined by the Court that the remaining  US$150,000 of the $1.3 million deposited with the Court by Richfield Oil & Gas Company ("Richfield") be released to Nostra Terra. The Court also determined that a further sum of approximately US$210,000 is to be paid by Richfield within 30 days, to cover the Company's attorneys' fees, costs of collection, and reimbursement for operating expenses.  In addition, Richfield has voluntarily dismissed all counterclaims against Nostra Terra.

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

"This should be the final hearing in the long litigation with Richfield, we're pleased to have resolution of this matter and be awarded the additional funds.  This will add to our existing cash in the bank which we anticipate using towards additional wells in our Chisholm Trail prospect and other prospects."

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

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

[e-mail]

Telephone: [phone]

Shore Capital & Corporate Limited (Nominated Adviser)

Bidhi Bhoma / Toby Gibbs

Telephone: [phone]

XCAP Securities plc (Broker)                            

Jon Belliss

Telephone: [phone]

Lothbury Financial Services Limited

Gary Middleton / Michael Padley

Telephone: [phone]

Notes:

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.

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. 

In May Nostra Terra announced receiving an initial $215,000 from the judgment.

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