Issue of Equity & Live Market Bookbuild

RNS Number : 7835C

Nostra Terra Oil & Gas Company PLC

19 April 2017

 

19 April 2017

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Issue of Equity & Live Market Bookbuild

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces that it has raised £500,000 by way of a placement of 25,000,000 new ordinary shares of 0.1 pence each ("Ordinary Shares") (the "Placing Shares") at a price of 2 pence per Placing Share (the "Placing").

Each Placing Share will be issued with one warrant, exercisable at a price of 3 pence for 12 months from the date of this announcement.

The purpose of the Placing is to enable the Company to quicken its plans for growth, through accelerated development of its existing portfolio of assets in the USA and potential new acquisitions.

Up to £260,000 of the total £500,000 raised will be available for subscription by onboarded users of the Teathers App (on which further information is disclosed below)  from 5pm today (Wednesday 19 April 2017) until 6am tomorrow (Thursday 20 April 2017) as part of a live market bookbuild. There is no commission charged for participating in deals through the Teathers App.

A further announcement on the result of any subscription through the Teathers App will be made tomorrow morning. For the avoidance of doubt, Teathers Financial PLC (the owner of the Teathers App) has committed to subscribe for the £260,000 to be made available under the Teathers App in the event of zero take-up by onboarded users.

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

"Over the last six months we've taken great strides at Nostra Terra in implementing our business model. Our new assets in Texas, at Pine Mills and across the Permian Basin, are generating sufficient free cash flow to continue development at a reasonable pace. However, we are an ambitious company and believe the current opportunity presented in the equity capital markets for oil & gas is one to be seized.

"Following recent publication of our Independent Reserves Report on our Texas assets, the Board felt that now is the optimal time to accelerate Nostra Terra's growth. In a short period of time, we have significantly increased our proven oil reserves through targeted deal making and improved the operational performance of the assets acquired. By increasing our available working capital we will now be able to quicken our planned work programme in Texas, while also potentially making additional value-generative acquisitions."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO			[phone]
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker)				[phone]
Rory Murphy / Ritchie Balmer
Smaller Company Capital Limited (Joint Broker)				[phone]
Rupert Williams / Jeremy Woodgate

Admission to trading and Total Voting Rights

The Placing is only conditional on the admission of the Placing Shares to trading on AIM ("Admission"). Application will made for Admission, which is expected to occur on 4 May 2017. The Placing Shares will rank pari passu with the existing Ordinary Shares.

Following the Placing, the Company's total issued ordinary share capital will consist of 120,566,771 Ordinary Shares with voting rights.  No Shares are held in treasury.

The above figure of 120,566,771 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Background to the Teathers App

The Teathers App is a mobile application designed to give qualified private investors access to placements & Initial Public Offerings (IPOs), predominantly on the London Stock Exchange's Alternative Investment Market (AIM).

The Teathers App is an execution only platform. When an AIM-listed company raises money by private placement, "onboarded" users of the Teathers App have the opportunity to participate in the placement on the same terms as other investors. An "onboarded" user of the Teathers App is one who has already opened a brokerage account with Shard Capital. Shard Capital is the broker supporting the Teathers App and provides the necessary environment, including compliance oversight and client identification. Shard Capital is regulated by the FCA.

The Teathers App is currently available in the App Store for iOS devices.  A version of the Teathers App will be released in Google Play imminently.

 

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