Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces that it has raised £500,000 by way of a placement of 25,000,000 new ordinary shares of 0.1 pence each (“Ordinary Shares”) (the “Placing Shares”) at a price of 2 pence per Placing Share (the “Placing”).
Each Placing Share will be issued with one warrant, exercisable at a price of 3 pence for 12 months from the date of this announcement.
The purpose of the Placing is to enable the Company to quicken its plans for growth, through accelerated development of its existing portfolio of assets in the USA and potential new acquisitions.
Up to £260,000 of the total £500,000 raised will be available for subscription by onboarded users of the Teathers App (on which further information is disclosed below) from 5pm today (Wednesday 19 April 2017) until 6am tomorrow (Thursday 20 April 2017) as part of a live market bookbuild. There is no commission charged for participating in deals through the Teathers App.
A further announcement on the result of any subscription through the Teathers App will be made tomorrow morning. For the avoidance of doubt, Teathers Financial PLC (the owner of the Teathers App) has committed to subscribe for the £260,000 to be made available under the Teathers App in the event of zero take-up by onboarded users.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
“Over the last six months we’ve taken great strides at Nostra Terra in implementing our business model. Our new assets in Texas, at Pine Mills and across the Permian Basin, are generating sufficient free cash flow to continue development at a reasonable pace. However, we are an ambitious company and believe the current opportunity presented in the equity capital markets for oil & gas is one to be seized.
“Following recent publication of our Independent Reserves Report on our Texas assets, the Board felt that now is the optimal time to accelerate Nostra Terra’s growth. In a short period of time, we have significantly increased our proven oil reserves through targeted deal making and improved the operational performance of the assets acquired. By increasing our available working capital we will now be able to quicken our planned work programme in Texas, while also potentially making additional value-generative acquisitions.”
