Nostra Terra issued with 1.3m-dollar loan note

AIM-listed oil and gas company Nostra Terra has been issued with a 1.3m-dollar loan secured loan note from Richfield.The loan note, which has been accruing interest at 10% per annum from the date of issue and which matured on January 31st 2012, is secured against several producing leases located in Kansas and several non-producing leases located in Utah.The company further reported that it had commenced legal proceedings in the Russell County, Kansas District Court, to enforce the note and foreclose on the collateral.In addition to the unpaid balance of the note and interest, Nostra is seeking to recover its costs of collection, including lawyer's fees. The company reported that it had filed a motion for partial summary judgment on its claims. The motion is set for a hearing on March 1st 2013. 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."Nostra Terra's share price was down 1.80% to 0.54p at 10:34 on Tuesday.MF