Nostra Terra Oil and Gas Company plc is a fast-growing exploration and production company focused on emerging plays within established hydrocarbon regions of the United States.
During the last two years, Nostra Terra has acquired interests in Kansas, Texas, Colorado and Oklahoma, and the company will continue to expand and upgrade its portfolio by identifying, screening and investing in a diverse pipeline of upstream assets in these areas. Working interests will vary, ranging up to 100% in some cases, and will include both operated and non-operated projects. The company is especially focused on pursuing projects where added value and strong cash flows can be generated through the use of advanced technology combined with disciplined cost control.
Nostra Terra agrees £5 mln equity-line facility with Yorkville
Nostra Terra (LON:NTOG) has secured up to £5 million in new funding, which will help in its bid to grow its asset portfolio in North America.
The equity-line facility, known as a Standby Equity Distribution Agreement (SEDA), has been arranged by Yorkville advisors.
The City firm's investment fund, YA Global Master SPV, can subscribe for new shares in NTOG over a 36 month period.
Furthermore the £5 million facility can be extended from £5 million to £10 million at any time during the three year term of the SEDA.
The company's chief executive Matt Lofgran said today: "Nostra Terra continues to see numerous opportunities for it to grow its asset base and while not all opportunities make it to the due diligence phase, the company continues to evaluate a number of potential transactions.
"Whilst most of these are within its existing resources, the board wanted to ensure that it has the capability to enter negotiations with potential partners in the best position.
"As a result, we believe that the SEDA is a good way to continue to show the financial strength of the company and will enable us to move quickly on exploiting these opportunities".
The agreement is subject to a number of factors, including that the shares issued under the SEDA will be priced at 96 percent of the lowest of the daily volume weighted average prices during the ten day pricing period following a draw down request or at a price agreed in writing between the company and YA Global prior to the commencement of the pricing period.
Nostra Terra also has the right to set a minimum acceptable price for each draw down, it added.