TIDMNTOG
RNS Number : 1692A
Nostra Terra Oil & Gas Company PLC
25 September 2020
25 September 2020
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Oversubscribed Fundraise
Nostra Terra (AIM: NTOG), the oil & gas exploration and
production company with a portfolio of development and production
assets in Texas, USA, is pleased to announce completion of an
oversubscribed fundraise of GBP500,000 with institutional and
professional investors.
During the current quarter, Nostra Terra acquired the Caballos
Creek Asset - an oil producing asset in South Texas, progressed
drilling plans for a new well at Pine Mills and signed a farm-in
agreement for a new oil producing asset in the Permian Basin.
The net proceeds of the fundraise will be used on the new
Permian Basin farm-in asset, the upcoming well at Pine Mills, and
for general working capital purposes, including evaluation of other
potential acquisitions or development of assets such as Caballos
Creek. Work is focused on assets that will generate near-term
cashflow with lasting reserves.
Nostra Terra's current work programme is now funded and the
activity is anticipated to produce significant additional cashflow
for the Company and remain robust, even at subdued oil prices.
The Company intends to provide a further update on all areas of
operation in the near future.
Fundraise
The Company has raised, in aggregate, GBP500,000, before
expenses, by way of a placing of 40,000,000 new ordinary shares
(the "Placing Shares") (the "Placing") and a subscription for
160,000,000 new ordinary shares (the "Subscription Shares") (the
"Subscription") at a price of 0.25 pence per share (the "Issue
Price"). The Placing and the Subscription together constitute the
"Fundraise".
The Issue Price represents a discount of approximately 16% to
the closing bid market price of the Company's ordinary shares on
AIM of 0.30 pence on 24 September 2020, being the latest
practicable date prior to this announcement. The Placing Shares and
Subscription Shares (together, the "Fundraise Shares") represent
approximately 35% of the Company's issued share capital as enlarged
by the Fundraise.
Participants in the Fundraise will be issued with one warrant
for every Fundraise Share subscribed for (the "Fundraise
Warrants"), resulting in the issue of 200,000,000 Fundraise
Warrants, as well as 12,000,000 warrants to an arranger of the
Fundraise ("Arrangement Warrants"). The Fundraise Warrants and the
Arrangement Warrants will be exercisable for a period of two years
at a price of 0.35 pence per share, which equates to a premium of
40% to the Issue Price.
The Company does not currently have the requisite share
authorities to issue new ordinary shares in connection with the
potential future exercise of all of the warrants issued in
connection with the Fundraise. Therefore, their issue is
conditional on shareholder approval at a duly convened general
meeting. Further announcements in this regard will be made in due
course.
Admission and Total Voting Rights
The Fundraise is conditional only on the admission of the
Fundraise Shares to trading on AIM ("Admission"). Application will
be made for Admission of the 200,000,000 Fundraise Shares which is
expected to occur at 8.00 a.m. on or around 8 October 2020.
Following Admission, the Company will have 579,520,534 ordinary
shares in issue, none of which will be held in treasury.
Accordingly, the total number of voting rights in the Company will
be 579,520,534 and shareholders may use this figure as the
denominator for the calculations by which they will 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.
Matt Lofgran , Nostra Terra 's Chief Executive Officer,
said:
"We've previously stated that we're focused on increasing our
cashflow in the near-term, through acquisition and development of
producing assets or those that can be put into production quickly,
all with long-life reserves and additional upside opportunity.
We now have three distinct areas of operations further balancing
our portfolio, with activity in each area aimed towards increasing
production and reserves in the near-term. Those activities are now
funded through investment from new and existing institutional and
professional investors. We look forward to updating on all fronts
as progress continues."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information, contact:
Nostra Terra Oil and Gas Company
plc
Matt Lofgran, CEO Email: +1 480 993 8933
Strand Hanson Limited
(Nominated & Financial Adviser and
Joint Broker)
Rory Murphy / Ritchie Balmer / Jack
Botros Tel: +44 (0) 20 7409 3494
Novum Securities Limited (Joint
Broker)
Jon Belliss
Tel: +44 (0) 207 399 9425
Lionsgate Communications (Public
Relations)
Jonathan Charles Tel: +44 (0) 7791 892509
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END
IOESEIFFIESSESU
(END) Dow Jones Newswires
September 25, 2020 07:10 ET (11:10 GMT)
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