Trading Statement

Nostra Terra Oil and Gas Company plc
                                 (the "Company")

                          Drilling update Oktyabrskoe #24

3 September 2008


Nostra  Terra Oil and Gas Company plc advises that it has stopped  work  on  its
Oktyabrskoe #24 well.

Following  the  removal of the cement bridge plugs on March 14,  2008  the  well
produced  gas and minor amounts of oil and water.  The initial pressure  of  the
reservoir  was such that over the next ten days the well produced oil and  water
with  the  oil content gradually increasing. Subsequently, the well  was  fitted
with  a  small  pump  and the well was put on production. The  addition  of  the
production pump resulted in the oil and water ratio remaining constant at around
5%-10%  of  oil.  The constant ratio of oil to water indicated  that  water  was
seeping  into  the well bore from another source. Over the last few  months  the
Company attempted to isolate the oil- bearing zones from the water zones by  re-
working the bottom of the well and doubling the packers. However in spite of all
our efforts the oil/water ratio remains substantially unchanged, indicating that
water  is migrating into the perforated zones.  Given the uncertainty as to  the
source of the water and the extent of the work already undertaken, the directors
have concluded that any further expenditure on well #24 cannot be justified.

The  Ukraine operation continues to produce about 12-15 barrels of oil  per  day
from  Oktyabrskoe  #1  which currently covers the majority  of  local  operating
expenditure  in  the  Ukrainne. Consideration is  being  given  to  opening  the
remaining  wells in the Oktyabrskoe field but given the target area will  be  in
the  same  zones  as #24 it is likely that the work plan will be  cancelled.  An
evaluation  is  also  being  undertaken to look at  the  feasibility  of  moving
operations  to  well #29 in the West Oktyabrskoe field where the CPR  identified
71% of the Company's reserves (Oil price $65.35 and Gas price of $3.66 Mcf.). In
each case however the Company will need to raise further working capital to meet
the anticipated exploration and ongoing operating costs.

The  directors  are in the process of evaluating the above and  other  strategic
possibilities and will report back to shareholders in due course.

For further information contact:

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


Blomfield Corporate Finance Limited            Tel: [phone]
Alan MacKenzie
Peter Trevelyan-Clark

END