The new funds will be used to support the advancement of its newly acquired interest in the Chisholm Trial prospect, the company said.
Around 241.6 million new shares will be issued to new and existing investors at a price of 0.36p each – which is a fairly modest discount of around 10 per cent to yesterday’s closing price.
Also, it is understood that the placing was oversubscribed.
"The board is delighted with support from existing and new shareholders of the Company who have participated in this placing,” said chief executive Matt Lofgran.
“We believe the Chisholm Trial Prospect is very exciting for shareholders and, following the placing, NTOG is fully-funded for all current drilling commitments.
“We now have a significant amount of activity in our various drilling programmes and confidence in the prospects in our portfolio. We look forward to updating the market on the activity throughout the remainder of the year."
The deal with Ward Petroleum which sees Nostra Terra acquire 20 per cent of Chisholm Trail was agreed last week.
Speaking with Proactive Investors Nostra Terra chief Matt Lofgran says the deal delivers the firm’s most significant asset to date, both in terms of equityparticipation and its potential scale.
He says that, based on the performance of nearby wells in the same play, Chisholm Trail wells could be the largest producers in Nostra Terra’s portfolio, with a rapid payout.
“This is now the biggest project in the portfolio for sure,” he said.
And unlike some of the firm’s other longer term assets Chisholm Trail comprises near term, drill ready programmes.
The first well could be drilled as early as next month and a further two wells could be underway before the end of the year.