Nostra Terra Oil & Gas provides Richfield (Hewitt) update
- On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the "Note") which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012.
- On 22 October 2012, Richfield approved a reverse stock-split (consolidation) of its outstanding common stock at an exchange ratio of 1-for-10.
Nostra Terra, the AIM quoted oil and gas producer with projects in the USA, is pleased to provide an update on the Richfield Oil & Gas Company ("Richfield") Note and Warrants (each as defined below).
On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the "Note") which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012. The Note is secured against certain producing leases located in Kansas and certain non-producing leases located in Utah.
On 1 February 2012, Nostra Terra commenced a lawsuit in the Russell County, Kansas District Court to enforce the Note and foreclose on the collateral. Nostra Terra now operates some of the producing leases in Kansas during the foreclosure process. In addition to the unpaid balance of the Note and interest, Nostra is seeking to recover its costs of collection, including attorney's fees. Nostra Terra has filed a motion for partial summary judgment on its claims. The motion is set for a hearing on 1 March 2013.
On 22 October 2012, Richfield approved a reverse stock-split (consolidation) of its outstanding common stock at an exchange ratio of 1-for-10. Following the split Nostra Terra holds a warrant to exercise 600,000 common shares at an exercise price $2.50 per share. On 29 January 2013 Richfield began be trading on the OTCQX under the symbol ROIL.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We are happy to get to this stage. Funds recovered under the Note will be allocated to the drilling of further wells within our portfolio."
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Nostra Terra Oil & Gas
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