Trading Statement

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

                                  Market Update

24 December 2008

Nostra  Terra  Oil  and  Gas  plc  reports  that  subsequent  to  our  reporting
unfavourable   results on Oktyabroskoe Well #24 the Company has  undertaken  the
following actions.

A  concerted effort to conserve cash and restructure liabilities was undertaken.
Management  and  Directors cash compensation was stopped and  negotiations  with
creditors were begun and employees in the Ukraine were made redundant.

We  have  continued to produce oil from Okktabryoskoe Well #1 and sales for  the
month of November were 325.8 barrels although the average selling price has  now
fallen to approximately $41.00 per barrel less royalties and production costs.

The   creditor  negotiations  have  produced  informal  agreement  to   a   debt
restructuring under which Convertible Loan Stock holders are expected to  extend
their debts (which are due for redemption at the end of this month).

Additionally, the Company has renegotiated an informal agreement to  reduce  the
face  value  of  its  Production/Acquisition notes due  to  Ucoco  Energy  Inc.,
Masterworks (Overseas) Limited and Nikea Trustees. These notes will  be  reduced
by  75%  of their face value and assigned to NTOL. Should the restructuring  not
proceed  and  other  measures being undertaken fail to produce  additional  cash
resources,  the  Company's  ability  to continue  operating  would  need  to  be
considered.

The  Company  is  currently negotiating a Farm In Agreement with  a  public  oil
company for the West Oktabryoskoe portion of the license held through NTOL.  The
directors  expect  these negotiations to be concluded in  early  2009  and  will
report  further  to shareholders at that time. The directors are also  reviewing
the  possibility of selling unneeded assets in the Ukraine which were originally
held to develop Well #24 and associated Wells.

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