Business
Placing and Operations Update
Placing and Operations Update.
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 Placing, Development of Bloom initiated, Operations update\n\n\n3 December 2009\n\nAIM Symbol: NTOG\n\nNostra Terra, the AIM-quoted oil and gas company, is pleased to announce:\n\n · The placing of 318,500,000 new ordinary shares raising £3.185 million.\n The funds will be used primarily to develop the Bloom property and will\n also enable further acquisitions as and when suitable opportunities arise.\n\n · Updates on Boxberger and Hoffman\n\nPlacing\n\nNostra Terra is pleased to announce that it has completed a placing of\n318,500,000 new ordinary 0.1p shares in the Company (the 'Placing Shares') at a\nprice of 1p per share, raising £3.185 million before expenses (the 'Placing').\n\nApplication has been made to the London Stock Exchange for the Placing Shares to\nbe admitted to trading on AIM (`Admission'). The Placing Shares will rank pari\npassu in all respects with the existing ordinary shares. The Placing is\nconditional only on Admission and it is expected that dealings in the Placing\nShares on AIM will commence on 8 December 2009.\n\nFollowing the issue and allotment of the Placing Shares the Company will have\n1,549,600,913 ordinary shares of 0.1p each in issue.\n\nUse of Proceeds\n\nBloom Property Development\nThe final acquisition payment for the Bloom property was met on 15 November\n2009. The initial development of the Bloom property, which is currently\nexpected to be completed during the first half of 2010, will be funded from the\nPlacing. There are nine production wells and two salt-water disposal wells at\nthe Bloom property, located in Russell County, Kansas. Under the terms of the\njoint venture between NTOG and Hewitt Petroleum, Inc., NTOG will receive 75% of\nthe net revenues from the Bloom property until its actual costs have been\nrepaid, thereafter 50%.\n\nFieldwork on Bloom Property\nProduction operations are expected to commence on the Bloom property in the next\nfour to eight weeks. This will be in addition to the existing rework program\ncurrently underway at the Boxberger and Hoffman leases, detailed below.\n\nAdditional Funds\nIn addition to the Bloom property, the proceeds of the Placing will be applied\nto the Company's working capital requirements and will also enable NTOG to make\nfurther acquisitions ...