Austin Chalk re-entry a success

Nostra Terra Oil and Gas Company plc

                        ("Nostra Terra" or the "Company")

                         Austin Chalk re-entry a success

16 June 2010

Nostra  Terra  Oil and Gas Company plc (AIM: NTOG) is pleased  to  announce  the
results  of the redevelopment work conducted on an Austin Chalk well located  in
the Giddings Field in Lee County, Texas, in which the Company has a 2% interest;
as announced on 7 June 2010.

A  new  lateral  section  extending just over 1900 feet  horizontally  from  the
original wellbore has been drilled into the Lower Austin Chalk. In an initial 24-
hour  flow test the redeveloped well produced at a gross rate of 994 barrels  of
oil  per  day (bopd) and 804,000 cubic feet of gas per day (mcfd). The well  has
sustained  those  production levels during the initial 3-day  production  period
although we anticipate production levels to decrease in line with the relatively
steep  decline  curves typical of the area and so will provide an  update  at  a
later date.

The  re-entry included the prospect of two different laterals. The first lateral
in the so-called upper "B Zone" and the second in the lower "A Zone". Within the
first  few days of drilling, indications of producibility in the B zone were  so
strong  that  the  decision was made to stop drilling  and  put  the  well  into
production  sooner. The drilling of the second lateral into the lower  "A  Zone"
has been deferred as a target for a later date.

The Texas Austin Chalk formation produces high-grade light crude oil and natural
gas  from a fractured carbonate of relatively low permeability, with the natural
fractures in the reservoir rock acting as conduits for hydrocarbon recovery. The
formation  has undergone several periods of exploitation as new techniques  have
been  developed to overcome low permeability. Most recently, horizontal drilling
has  proved  to  be highly effective in accessing more fractures from  a  single
wellbore than is possible through traditional vertical drilling.

Historically, Austin Chalk producing wells have delivered at high initial  rates
but  with  relatively steep decline curves, and this is also generally the  case
when  modern horizontal drilling techniques are used. Nevertheless, the  current
well  is  expected to remain in production for several years before  its  output
falls below commercial levels, and Nostra Terra intends to grow its presence  in
the  Austin Chalk redevelopment play in view of the potential rapid payback  and
high ROI it can generate at relatively low risk and operating cost.

Matt  Lofgran, CEO of Nostra Terra, said: "Our first step into Texas is  a  very
small  one,  but  we are delighted with the initial results which  validate  our
expansion  strategy. We intend to build a significant proportion of our  growing
business  by  drilling horizontal wells in established sandstone  and  carbonate
reservoirs  like the Austin Chalk. Where appropriate and value adding,  we  will
leverage existing relationships by partnering with other companies."

He  added: "We recognise that some of these redeveloped wells will perform above
and  some below our expectations, but we will put each candidate well through  a
careful  screening  process  to identify those with the  highest  potential  and
probability  of  success.  We will then apply the most effective  technology  to
maximise the profitability of those we select for redevelopment."

The  technical information in this announcement has been reviewed  and  approved
for  release  by Alden McCall, a consultant to Nostra Terra. He is  a  Certified
Petroleum  Geologist  and  a  member of the American  Association  of  Petroleum
Geologists  and  the  Society of Petroleum Engineers, among  others,  and  is  a
qualified person as defined in the Note for Mining and Oil & Gas Companies, June
2009, of the London Stock Exchange.


For further information contact:

Nostra Terra Oil and Gas Company plc                  Telephone: [phone]
Matt Lofgran, CEO
[e-mail]

Religare Capital Markets                          Telephone: [phone]
Peter Trevelyan-Clark/Ben Jeynes

Alexander  David Securities Ltd                   Telephone: [phone]
David Scott/Bill Sharp/Nick Bealer


Announcements  made  by  the  Company are available automatically  by  email  to
thosewho register at www.ntog.co.uk.

For more information please visit: www.ntog.co.uk