REG - Nostra Terra O&G Co - Growth Plans and Fundraise, Issue of Equity & TVR

Nostra Terra Oil and GasAnnouncement

11/01/2024 07:00

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RNS Number : 3221Z  Nostra Terra Oil & Gas Company PLC  11 January 2024

11 January 2024

 

Nostra Terra Oil and Gas Company Plc

("Nostra Terra" or "the Company")

 

Growth Plans and Fundraise

Issue of Equity & TVR

 

Nostra Terra (AIM: NTOG), the international oil & gas exploration and
production company with a portfolio of development and production assets in
Texas, USA, is pleased to announce growth plans and a successful fundraise
supported by institutional investors.

 

Following the success of the Fouke wells at the Company's Pine Mills asset in
East Texas, Nostra Terra has been looking for similar opportunities in this
prolific region of East Texas. The Company is nearing completion of an
agreement that will allow it to develop additional, analogous opportunities
over a large area both within and contiguous to the existing Pine Mills
acreage using modern 3D seismic data. Previous use of this seismic data has
resulted in the successful Fouke wells and other similar aged prospects in
this area. Based on the experience gained from Pine Mills, this opportunity
has the potential to provide an inventory of drilling locations for many years
to come.

 

To support this, the Company has raised £300,000 (before expenses) through a
subscription and placing of 250,000,000 new ordinary shares at a price of
0.12p per share (the "Placing Price") (the "Placing"). Funds from the Placing
will be used to develop the drilling opportunities around its Pine Mills asset
and for general working capital. The fundraise was cornerstoned by
institutional investors.

 

 

Matt Lofgran, Nostra Terra's Chief Executive Officer, said:

 

"The Fouke wells at Pine Mills have been a great success, providing strong
returns for the Company. I am delighted to announce that we have strong
support from respected institutional investors, which will now allow us to
accelerate growth opportunities in front of us. We anticipate closing the Pine
Mills transaction in the coming days."

 

 

The Company has raised, in aggregate, £300,000, before expenses, by way of a
subscription for 100,000,000 new ordinary shares (the "Subscription Shares")
(the "Subscription") and a placing of 150,000,000 new ordinary shares at a
price of 0.12 pence per share (together the "Fundraise Shares"). In addition,
an existing noteholder, Discovery Energy Ltd, has requested to be able to
convert some of their outstanding note into equity and therefore £30,000 is
being converted at the Placing Price by the issue of an additional 25,000,000
new Ordinary Shares (the "Conversion Shares"). In connection with the Placing,
9,000,000 broker warrants have been granted to Novum Securities Limited and
8,000,000 warrants have been issued to consultants, exercisable at the Placing
Price with a three-year expiry. The Subscription is with Dos Hermanos
International, LLC who, as a result of their subscription, are expected to
hold 100,000,000 Ordinary Shares representing approximately 9.8% of the
Company's enlarged issued share capital.

 

An application will be made to the London Stock Exchange for the 250,000,000
Fundraise Shares and 25,000,000 Conversion Shares to be admitted to trading on
AIM ("Admission"). It is expected that Admission will become effective on or
around 25 January 2024.

 

In accordance with the FCA's Disclosure Guidance and Transparency Rules, the
Company confirms that on issue of the Fundraise Shares and Conversion Shares
and following Admission, the Company's enlarged issued ordinary share
capital will comprise 1,021,520,534 Ordinary Shares.

 

The Company does not hold any Ordinary Shares in Treasury.  Therefore,
following Admission, the above figure may be used by shareholders in the
Company as the denominator for the calculations to determine if they are
required to notify their interest in, or a change to their interest in the
Company, under the FCA's Disclosure Guidance and Transparency Rules.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

For further information, contact:

 Nostra Terra Oil and Gas Company plc  Tel:  +1 480 993 8933

 Matt Lofgran, CEO

 Beaumont Cornish Limited              Tel:  +44 (0) 20 7628 3396

 (Nominated Adviser)

 James Biddle/ Roland Cornish

 Novum Securities Limited (Broker)     Tel:  +44 (0) 207 399 9425

 Jon Belliss

 

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