Acquisition of Oil and Gas Properties in Kansas...

NOSTRA TERRA OIL AND GAS COMPANY PLC ("NTOG" or the "Company") Acquisition of Oil and Gas Properties in Kansas, USA 15 July 2009 NTOG is pleased to announce that on 13 July it entered into definitive agreements with Hewitt Petroleum, Inc. ("HPI") for the purchase and exploration of three properties in Kansas, USA for an initial consideration of US$235,000 which has been paid in cash with US$25,000 of the balance due within 60 days of execution of definitive agreements ("Execution"), US$275,000 within 90 days of Execution and US$100,000 to be satisfied by the assignment by Mr Lofgran to HPI of his working interest in another property known as the Perth field where HPI is also a partner. The acquisitions and development plans fit within NTOG's new strategy announced on 30 June 2009 in which it looks to acquire assets in the USA to diversify from Ukraine into areas of low political risk, while acquiring properties of low geological risk with significant undeveloped reserves, with an objective of developing a stable, and steady cash flow. NTOG's newly appointed CEO Matt Lofgran commented: "This is a critical turning point for NTOG and its shareholders. The properties we have acquired and are seeking to acquire have existing production, but more importantly proven reserves, which provide the opportunity for significant upside. In addition we have partnered with Hewitt Petroleum Inc, a proven operator and expert in these given fields. We are very excited about the quality of properties and relationships we are bringing to NTOG." The properties acquired are as set out below: Koelsch Field A 50 per cent working interest in two production wells and one salt water disposal well in the Koelsch Field, located in Russell County, Kansas. The working interest is subject to an over burden of not more than 22 per cent. HPI has undertaken to deliver a recordable assignment of the assigned working interest within 90 days of Execution failing which a US$60,000 advance shall be repaid to NTOG. In the event the leases and wellbore are acquired the estimated costs for the deepening and reworking of the two production wells and the development cost for the reworking of the Salt Water Disposal Well are US$231,000 to be met by NTOG which will receive 75% net revenues until its actual costs have been repaid and thereafter 50%; Hoffman Field A 25 per cent working interest in five production wells (of which two are plugged) and one salt water disposal well in the Hoffman Field, located in Barton and Russell County, Kansas. The working interest is subject to an over burden of not more than 22 per cent. US$125,000 cash has been paid for the assignment of the working interest, with the balance of US$275,000 due within 90 days of Execution. The estimated costs for the deepening and reworking of the five production wells and the development cost for the reworking of the Salt Water Disposal Well are US$1,350,000 of which 25 per cent is to be met by NTOG. If revenue is generated from production on the project prior to NTOG completely paying for their interest then the revenue shall be adjusted on a prorate basis for the amount that NTOG has actually paid; and Bloom Field A 50 per cent working interest in nine production wells and two salt water disposal wells in the Bloom field, located in Russell County, Kansas. The working interest is subject to an over burden of not more than 22 per cent. US$50,000 cash has been paid for the assignment of the working interest, with US$25,000 of the balance due within 60 days of Execution and a further US$150,000 within 90 days. The remaining US$100,000 is being satisfied by the assignment by Mr Lofgran to HPI of his working interest in another property known as the Perth field where HPI is also a partner. NTOG shall have no obligations owed to Mr. Lofgran in compensation of the transfer of his asset to HPI. The estimated costs for the deepening and reworking of the nine production wells and the development cost for the reworking of the two Salt Water Disposal Wells are between US$1,820,000 and US$2,550,000 to be met by NTOG which will receive 75% net revenues until its actual costs have been repaid, thereafter 50%. Under the agreements between NTOG and HPI, in the event that either party elects not to participate in the drilling, deepening, reworking or completion attempt on an additional well, such party will be deemed to have released and relinquished to the other participating party or parties all its right, title and interest in and to that well and the participating party shall own the relinquished interest free and clear of all obligations to the non-participating party. APPL 82 revised joint operating agreements have been executed in respect of all three leases between NTOG and HPI (as non-operators) and Hewitt Energy Group, Inc (as Operator). 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 Matt Lofgran, CEO mlofgran@ntog.co.uk Tel: +1 480 993 8933 Blomfield Corporate Finance Ltd Tel: +44 (0)20 7489 4500 Alan MacKenzie/Peter Trevelyan-Clark/Ben Jeynes Alexander David Securities Ltd Tel: +44 (0)20 7448 9820 David Scott/Jon Levinson ENDS
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