Interim Management Statement & Accounts

Nostra Terra Oil and Gas Company plc (the 'Company' or 'NTOG') Interim accounts for the five months to 30 June 2007 CHAIRMAN'S STATEMENT 24 September 2007 Nostra Terra Oil & Gas Company Plc (formerly LHP Investments Plc) acquired Nostra Terra (Overseas) Limited (NTOL), raised £350,000 (excluding expenses) and was admitted to trading on AIM on 20 July 2007 which is after the end of the interim period being reported. NTOL intends to re-open certain wells which were previously producing oil in the area covered by its Oktyabrskoe licence in the Tarkhankurt Peninsula located in the northwest region of greater Crimean Peninsula in Ukraine, which were capped as being uneconomic in a period when oil prices were at much lower levels. Financial Overview Expenses incurred during the period relate to basic administration costs and as at the date of the balance sheet the company had net current assets of £117,000, all effectively held in cash. For the period a loss of £3,000 has been incurred, which on a weighted average equates to a basic and fully diluted loss of 0.004p pence per share; no dividend is being declared. Review and Outlook The Board has been joined by myself as Chairman, Brian Courtney as Chief Executive Officer , Glenn MacNeil as Chief Financial Officer and Des Smith as Chief Operating Officer. We have begun fieldwork on the Oktyabrskoe licence to re-open wells numbers 24 and 10. We are optimistic and expect the success of these re-openings to be known in October in respect of well 24 and in December in respect of well 10. Further fieldwork on the Oktyabrskoe licence to re-open other wells is also being planned. Sir Adrian Blennerhassett Chairman September 21.2007 For further information contact: Nostra Terra Oil and Gas Company plc Brain Courtney, Chief Executive Officer bcourtney@ntog.co.uk Stephen Oakes, Non-executive Director Tel: +44 (0)207 877 8788 ARM Corporate Finance Limited Tel: +44 (0)20 7512 0191 Alan MacKenzie Ben Jeynes Income Statement for the five months ended 30 June 2007 Five months to Six months to Year ended 30 June 2007 31 July 2006 31 January 2007 Unaudited Unaudited audited Continuing operations Revenue - - 1 Cost of Sales - - - __________ __________ __________ Gross Profit - - - Administrative expenses (5) (41) (77) __________ __________ __________ Operating Loss (5) (41) (76) Investment revenues 2 2 4 Finance costs - - - __________ __________ __________ Loss before tax (3) (39) (72) Income tax charges - - - __________ __________ __________ Loss for the period from continuing operations attributable to shareholders (3) (39) (72) ========== ========== ========== Loss per share From continuing operations: Basic and diluted (0.004p) (0.06p) (0.12p) __________ __________ __________ The company's turnover and operating loss arise from continuing operations. There were no recognised gains or losses other than those recognised in the income statement above. Balance Sheet as at 30 June 2007 As at 30 June As at 31 July As at 31 2007 2006 January 2007 Unaudited Unaudited Audited £'000s £'000s £'000s Assets Non-current assets Property, plant and equipment - - - Goodwill - - - Other intangibles - - - __________ __________ __________ - - - __________ __________ __________ Current assets Inventories - - - Trade and other receivables 56 9 2 Cash and cash equivalents 96 152 151 __________ __________ __________ 152 161 153 __________ __________ __________ Total assets 152 161 153 ========== ========== ========== Equity and liabilities Capital and reserves Share capital 63 63 63 Capital Reserves 167 167 167 Retained earnings (113) (77) (110) __________ __________ __________ Total equity 117 153 120 __________ __________ __________ Non current liabilities Other loans - - - __________ __________ __________ - - - __________ __________ __________ Current liabilities Trade and other payables 35 8 33 Other loans - - - __________ __________ __________ 35 8 33 __________ __________ __________ __________ __________ __________ Total liabilities 35 8 33 __________ __________ __________ Total equity and liabilities 152 161 153 ========== ========== ========== Cash Flow Statement For the five months ended 30 June 2007 Five months Six months Year ended to 30 June to 31 July 31 January 2007 2006 2007 Unaudited Unaudited Audited Note £'000 £'000 £'000 Operating activities 3 (57) (43) (46) Investing activities Interest received 2 2 4 Interest paid - - - Purchases of plant and equipment - - - Financing activities Proceeds on issue of shares - (3) (3) __________ __________ __________ Net cash outflow (55) (44) (45) Cash and cash equivalents at the beginning of the period 151 196 196 __________ __________ __________ Bank balances and cash 96 152 151 __________ __________ __________ Consolidated statement of changes in equity As at As at As at 30 June 2007 31 July 2006 31 January 2007 £'000s £'000s £'000s As at beginning of period 120 195 195 Deficit for the period (3) (39) (72) Issue of share capital net of expenses - (3) (3) __________ __________ __________ As at end of period 117 153 120 ========== ========== ========== Notes to the Interim Report 1. Significant Accounting Policies These interim accounts have been prepared in accordance with International Financial Reporting Standards and on the historical cost basis, using generally recognised accounting principles. The Company adopted International Financial Reporting Standards (IFRS) adopted by the European Union as the basis for preparation of its financial statements from 1 February 2007. There have been no adjustments or restatements resulting from the transition to IFRS. This interim report for the five months to 30 June 2007 which complies with IAS34, was approved by the Board on 21 September 2007. 2. Loss per Share Five months to Six months to Year ended 31 30 June 2007 31 July 2006 January 2007 Earnings per ordinary shares Basic and diluted (0.004p) (0.06p) (0.12p) __________ __________ __________ The loss per ordinary share is based on the company's loss for the period of £3,000 ( 31 July 2006 - £39,000) 31 January 2007 £72,000 and a basic and diluted weighted average number of shares in issue of 62,750,000. 3. Reconciliation of operating loss to net cash outflow from operating activities. Five months to Six months to Year ended 31 30 June 2007 31 July 2006 January 2007 £'000s £'000s £'000s Adjustments for : Amortisation of other intangibles - - - Depreciation of property, plant and equipment - - - (Increase) in inventories - - - (Increase)/Decrease in receivables (54) (3) 4 Increase in payables 2 1 26 __________ __________ __________ Net cash from operating activities (57) (43) (46) ========== ========== ========== 4. Called up Share Capital The issued share capital as at 31 January 2007, per the audited accounts was 62,750,000 Ordinary Shares of 0.1p each. 5. The unaudited results for period ended 30 June 2007 do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the year ended 31 January 2007 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and which contain an unqualified audit report and did not contain statements under Section 237(2) or (3) of the Companies Act 1985. 6. Copies of this interim statement are available from the Company at its registered office at Finsgate, 5-7 Cranwood Street, London EC1V 9EE. The interim statement will also be available on the company website www.ntog.co.uk. 7. Events subsequent to 30 June 2007 On the 19 July 2007 the company acquired Nostra Terra (Overseas) Limited and was readmitted to trading on AIM. The authorised share capital was increased from £1,000,000 to £1,500,000 and the company issued 70,000,000 ordinary shares of 0.1p each to raise £350,000 before expenses.