Nostra Terra Oil and Gas : Permitting for 3 New Wells

RNS Number : 7251C

Nostra Terra Oil & Gas Company PLC 24 January 2018

24 January 2018

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Permitting for 3 New Wells

Nostra Terra (AIM:NTOG), the oil and gas explora#on and produc#on company with a por'olio of assets in the USA and Egypt, is pleased to announce the accelera#on of its plans for developing its assets in the Permian Basin.

On 27 December 2017, Nostra Terra announced its inten#on to ini#ate the permi3ng process for a new well at one of the Company's 24 drill-ready loca#ons across its Permian acreage. However, with legal comple#on of the new Senior Lending Facility expected to take place before the end of January 2018 (as announced on 8 January 2018), which provides the Company with immediate access to US$1.2 million of funding, the Board has now decided to increase the number of permits it applies for from one to three.

The increase in the number of permitted drilling locations would enable Nostra Terra to drill new wells in quicker succession. The Company intends to review various options in this respect, including the possibility of securing a drilling rig beyond the initial well. Such an approach could have the benefit of reducing the overall costs of drilling the individual wells by spreading certain fixed expenses.

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

"Confirma on of the new Senior Lending Facility could prove to be a catalyst for exci ng growth for Nostra Terra. We are an ambi ous and nimble company. Our strategy over the last 18 months has been to take advantage of depressed oil prices, by securing assets that are both economic at lower oil prices and provide further development and explora on upside. As previously announced, we es mate our assets in the Permian Basin to have a 2:1 ROI at $40 oil. At higher oil prices we couldn't be more excited to drill."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, visitwww.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO

Tel:

[phone]

Strand Hanson Limited

Tel:

[phone]

(Nominated & Financial Adviser and Joint Broker)

Rory Murphy / Ritchie Balmer / Jack Botros

Smaller Company Capital Limited (Joint Broker)

Tel:

[phone]

Rupert Williams / Jeremy Woodgate

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLFXLLLVFFEBBX