Richfield Judgement Update

RNS Number : 0533N

Nostra Terra Oil & Gas Company PLC

03 September 2013

 

AIM: NTOG

3 September 2013

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Richfield Judgment - Update

Further to the announcement of 1 July 2013, Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to update on progress of the collection of the Richfield Judgment.

Nostra Terra holds a judgment against Richfield for in excess of US$1,500,000, plus ongoing interest, attorney's fees, and costs of collection. 

Six Russell County, Kansas leases belonging to Richfield will be sold at a public auction conducted by the Russell County Sheriff on 12 September 2013.  The net proceeds from the sale will be applied to the balance of the judgment.  Three of the leases, which were the subject of the 1 July announcement, including two producing wells and one saltwater disposal well, were originally auctioned at a Sheriff's sale on 27 June 2013.  Subsequent to that auction, Nostra Terra voluntarily made the decision to set aside the sales in order for these leases to be auctioned together with three additional leases, with producing and non-producing wells that share the same saltwater disposal well. 

As of today, Nostra Terra also has a lien on all of Richfield's real property assets in the State of Utah.  On 18 July, 2013 Richfield announced they have increased their lease position from 10,562 acres to 15,375 acres in Central Utah. All of these leases are included in the assets liened by Nostra Terra.  Auctions for these assets will be scheduled in order to satisfy the Judgment awarded to Nostra Terra.

Further efforts to collect on the judgment, including garnishments, have been undertaken and will continue until the judgment is satisfied in full. 

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

"While Richfield has stated that they will 'vigorously defend against this foreclosure action,' the reality is that the foreclosure action has already progressed to judgment in favor of Nostra Terra.  Nostra Terra will continue its vigorous effort to collect its judgment in full either through cash or assets."

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

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

[e-mail]                                                 Telephone: [phone]

Shore Capital & Corporate Limited (Nominated Adviser) 

Bidhi Bhoma/ Toby Gibbs                                           Telephone: [phone]

XCAP Securities plc (Broker)                             

Jon Belliss                                                                   Telephone: [phone] 

Lothbury Financial Services Limited

Gary Middleton / Michael Padley                                 Telephone: [phone]

Definition:

Garnishing; In this legal process, the judgment creditor obtains a court order requiring the garnishee to turn over funds or property to the judgment creditor instead of to the owner, the judgment debtor. The most common garnishments are against employers, requiring them to withhold a portion of wages and salary and pay it to the creditor rather than to the employee. The second most common garnishment is against a bank, ordering it to turn over bank account funds to the judgment creditor.

Notes:

On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the "Note") which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012. The Note is secured against certain producing leases located in Kansas and certain non-producing leases located in Utah. Nostra Terra has been operating some of the producing leases in Kansas during the foreclosure process.

On 2 April 2013, a judgment was entered in favour of Nostra Terra on its claims against Richfield for approximately $1,500,000, plus attorneys' fees and collection costs, for an amount still to be determined by the court. 

In May Nostra Terra announced receiving an initial $215,000 from the judgement

Nostra Terra has seen better than expected production success in Oklahoma with its Chisholm trail prospect propelling the company over the break even stage for the first time earlier this year.

 

END

 

 

MSCQLLFBXKFFBBF