12th Sep 2013 13:18
LONDON (Alliance News) - Nostra Terra Oil and Gas company PLC said that the proposed sheriff sale of six leases owned by Richfield Oil & Gas Company to pay off debts to Nostra Terra has been cancelled.
The US-based oil-and-gas development-and-production company said Richfield Oil & Gas deposited USD1.3 million with the court on Tuesday to be paid to Nostra Terra, and the proposed sheriff sale for Thursday has now been cancelled along with all outstanding writs of execution.
A sheriff's sale is a public auction sale of property pursuant to a court order to seize and sell the property to satisfy a judgement.
Richfield Oil & Gas had been ordered by a US court in April to pay Nostra Terra in excess of USD1.5 million, plus continuing interest and legal fees.
Nostra said three of the leases, including two producing wells and one saltwater disposal well were originally auctioned on June 27. However, it had decided to set aside the sales in order for the leases to be auctioned together with the three additional leases.
The company also had a lien, or right to keep property, on all of Richfield's real property assets in Utah, and last month Richfield announced it has increased its lease position from 10,562 acres to 15,375 acres.
A hearing is scheduled for October 1 to determine any additional sums owed to Nostra Terra, including attorneys' fees, costs of collection, and reimbursement for operating expenses incurred by Nostra Terra.
"We are pleased to see this situation coming to a satisfactory conclusion for Nostra Terra. Nostra has been building a strong portfolio of assets and the USD1.3 million cash, when received, puts us in an even stronger cash position which will help us further expand our asset base," Chief Executive Matt Lofgran said in a statement.
Nostra Terra shares were up 1.2% to 0.425 pence Thursday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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