Loan Stock Draw Down, Conversion and Issue of E...

Nostra Terra Oil and Gas Company plc ('NTOG' or the 'Company')

              Loan Stock Draw Down, Conversion and Issue of Equity

19 September 2007

Pursuant to the facility agreement (the `Facility Agreement') dated 25 June 2007
between the Company and Power Elite Trading Inc (`PET'), and as detailed in  the
Company's admission document dated 25 June 2007, PET provided a facility  of  up
to  £600,000  which  the  Company could draw down into loan  stock,  subject  to
certain conditions. In addition, PET had the option to require up to £300,000 to
be  drawn if at the end of the facility period, being one year from admission to
AIM,  that  sum had not been drawn down. PET has offered to waive the conditions
and  make  £100,000 of this facility to be available to the Company to be  drawn
down as loan stock immediately should the Company wish to do so. The Company has
taken  advantage  of  PET's offer in order to provide the Company  with  greater
flexibility  to complete its drilling programme. PET has instructed the  Company
that following the draw down, the £100,000 of loan stock is to be converted into
ordinary shares in the Company at a rate of one ordinary share for every of 0.5p
of loan stock, in accordance with the Facility Agreement.

The Company currently expects its drilling programme should indicate whether oil
is able to be produced from well #24 in October and well #10 in December.

Name                         Amount of Loan Stock    Number of Ordinary
                             Converted               Shares

Power Elite Trading Inc          £100,000                20,000,000


As  a  result of the loan stock conversion, PET will be interested in 20,000,000
ordinary shares in the Company. This holding represents 6.18%

Following the issue and allotment of the new ordinary shares, the  Company  will
have 323,549,522 ordinary shares of 0.1p in issue.

Application has been made for the new ordinary shares to be admitted to  trading
on AIM on 21 September 2007.


For further information contact:

Nostra Terra Oil and Gas Company plc
Brain Courtney, Chief Executive Officer        [e-mail]
Stephen Oakes, Non-executive Director          Tel: [phone]


ARM Corporate Finance Limited                  Tel: [phone]
Alan MacKenzie
Ben Jeynes