Business
Acquisition, Placing & Issue of Warrants
Acquisition, Placing & Issue of Warrants.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n NOSTRA TERRA OIL AND GAS COMPANY PLC\n (\"Nostra Terra\", \"NTOG\" or the \"Company\")\n\n Acquisition, Placing & Issue of Warrants\n\n21 August 2009\n\nNostra Terra, the AIM-quoted oil and gas company is pleased to announce:\n\n · The acquisition of a 50 per cent working interest in ten production wells\n and one salt water disposal well (together the \"Boxberger Wells\") located in the\n Boxberger field, Russell County, Kansas, USA (the \"Boxberger Field\");\n · a 6-month extension on funding development of other properties; and\n · a placing of 233,333,333 new ordinary shares of 0.1p each (\"Ordinary\n Shares\") at a price of 0.15p each, raising £350,000, before expenses.\n\nAcquisition\n\nNTOG has acquired a 50 per cent. working interest in ten production wells and\none salt water disposal well in the Boxberger Field from Hewitt Petroleum, Inc.\n(\"HPI\") for a total consideration of US$230,000 of which US$50,000 has been paid\nin cash. The remaining US$180,000 of the acquisition cost is to be paid by NTOG\nafter the initial development costs (for which NTOG has assumed responsibility)\nhave been completed or within twelve months of the execution of the definitive\nagreement (\"Execution\") whichever is earlier.\n\nOn 20 August 2009 NTOG entered into a definitive agreement with HPI for the\npurchase and exploration of the Boxberger Wells. NTOG has been granted a 50 per\ncent. working interest in the Boxberger Wells; the working interest is subject\nto an over burden of not more than 20-22 per cent.\n\nNTOG and HPI have agreed that initial production shall place at least two wells\ninto production. The costs of production are to be agreed between NTOG and HPI\nhowever, NTOG is committed to paying US$350,000 towards such costs, which shall\nbe paid within two weeks of Execution. The remainder of the development costs\nwill be paid over the life of the development process. NTOG has also agreed to\nassign its proceeds from production from the Boxberger Wells to pay for its\nobligation to pay for the development costs of the Boxberger Wells until all\neleven wells have been developed.\n\nHPI and NTOG shall bear the revenue and operating costs for the wells on the\nbasis of 75 per cent. to NTOG and 25 per cent. to HPI until such time as NTOG\nhas received revenue from the production revenue of the Boxberger Wells equal to\n...