Nostra Terra, the AIM-listed oil and gas producer with a portfolio of assets in the USA, has received an initial 200,000 dollars following a legal ruling involving Richfield Oil & Gas.
On April 14th 2011, Nostra Terra reported that Richfield Oil & Gas (formerly Hewitt Energy Group) had issued a $1.3m secured loan note to it which had been accruing interest at 10% per annum from the date of issue and which matured on January 31st 2012.
Nostra Terra said that the note had been secured against certain producing leases located in Kansas and certain non-producing leases located in Utah and Nostra Terra said it had been operating some of the producing leases in Kansas during the foreclosure process.
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On April 2nd 2013, Nostra Terra reported that a judgment had been entered in favour of Nostra Terra on its claims against Richfield for approximately $1.5m, plus attorneys' fees and collection costs, for an amount still to be determined by the court.
In addition to the judgment against Richfield awarding Nostra Terra over $1.5m plus costs, the company said that the court ordered that certain production proceeds owed to Richfield by National Cooperative Refinery Association totalling approximately $215,000 be paid to Nostra, as part of the funds due to Nostra Terra under the judgment.
Nostra Terra said that a portion of the funds would be applied against operating expenses already incurred by it for operating the leases and added that the proceeds "have now been received".
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: "These funds collected from Richfield will go towards our drilling program where we anticipate increasing our production levels significantly this year."
Nostra Terra's share price was up 1.10% to 0.46p at 09:53 on Friday.
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