Production Starts at Chisholm Trail 3 & 4

AIM: NTOG

8 January 2013

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Chisholm Trail - Third and Fourth Wells begin Production

Nostra Terra, the AIM-quoted oil and gas producer with projects in the USA, is pleased to announce that the third and fourth horizontal wells in the Chisholm Trail Prospect (CT3 and CT4) located in Oklahoma, have been completed and are now producing.

As with the first two wells, the third and fourth wells are cleaning up, while recovering a mixture of fraccing fluid, oil and gas during this process.

The acquisition of leases and well permitting continues by the Company in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"I am pleased to announce that production has now commenced on what is, at the moment, our largest interest's in the Chisholm Trail prospect where we have a 12.58% and 5.31% interest.

Alden McCall, Chief Operating Officer of Nostra Terra added:

"The wells are in the very early stages of production. As is our continuing philosophy, we will announce the production rate when a period of stability has been attained. Nostra Terra will continue investing with Ward Petroleum as the prospect develops, while seeking similar opportunities elsewhere."

For further information, visit www.ntog.co.uk or contact:

Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO

[email protected] Telephone: +1 480 993 8933

Shore Capital & Corporate Limited (Nominated Adviser)

Bidhi Bhoma/ Toby Gibbs Telephone: +44 (0)20 7408 4090

Alexander David Securities Ltd

David Scott / Bill Sharp Telephone: +44 (0)20 7448 9812

Lothbury Financial Services Limited

Gary Middleton / Michael Padley Telephone: +44 (0)20 3440 7620

Notes:

In September 2012, Nostra Terra entered into an agreement with Ward Petroleum for the Chisholm Trail Prospect, a multi-well horizontal drilling project in Oklahoma. The prospect area is large in size and a leasing programme is on-going. Nearby drilling has resulted in several wells that produce in excess of 200boepd after the first 30 days of "flush" production. Nostra Terra owns a 20% interest in this active programme within which working interests in the individual wells vary. Based on results from neighbouring wells, we anticipate this prospect also has the potential to deliver rapid payouts with continued strong production levels.

Ward Petroleum Corporation, based in Enid Oklahoma, was founded in 1963 by Lew Ward, its Chairman. Mr. Ward is a past-President of the Independent Producers Association of America (IPAA) and is a respected member of the oil producers' community of the United States. Among its industry honours, Ward Petroleum has been listed in the top 100 fastest growing American companies by Inc. magazine, and has been named a "Blue Chip Enterprise" by Nations Business magazine. Since its founding, Ward Petroleum has drilled more than 800 wells in the Anadarko and Arkoma Basins, some as deep as 22,000 feet. Ward Petroleum operates nearly 350 wells in Oklahoma throughout both basins.

Oklahoma is the fifth largest producing state in the United States in crude oil production. Despite its long history, it still produces about one quarter of the peak rate that was reached in 1927. The state was the birthplace for such commonly recognized corporate names as Halliburton, ConocoPhillips and J. Paul Getty.