annual report 
2011
annual report 2012 page
highlights 1
company information 2
chairman’s statement 3
chief executive’s review 4
directors’ report 7
corporate governance report 11
board of directors 13
independent auditors’ report 14
consolidated income statement 16
consolidated statement of comprehensive income 17
consolidated statement of changes in equity 18
company statement of changes in equity 19
consolidated statement of financial position 20
company statement of financial position 21
consolidated statement of cash flows 22
note to the consolidated statement of cash flows 23
company statement of cash flows 24
note to the company statement of cash flows 25
notes to the financial statements 26
contents 1 annual report 2012
• 11 producing wells over 8 prospects
• 44 increase in revenue to £352000 2011 £244000
• gross proﬁt of £90000 2011 loss of £126000 reduced overall loss
• acquired a 20 interest in the chisholm trail prospect oklahoma with varying interests in
individual wells – ﬁrst four wells all exceeding production expectations
• acquired a 10 working interest in the warrior prospect oklahoma and brought well into
production
• bale creek oklahoma brought into production
• initial verde well colorado exceeded expectations and reached payout in nine months with a
second well undergoing completion at the year end
• secured a new loan facility of up to us3 million and raised more than £1 million through
placings of new shares
post balance sheet highlights
• surpassed breakeven at the operational level in january 2013
• acquired a 20 working interest in the high plains prospect
• acquired further acreage in the chisholm trail prospect giving exposure to 21 potential drilling
locations
• successfully concluded legal action against richﬁeld oil  gas resulting in a judgement to
recover in excess of us15 million – initial 200000 received
• raised a further £05 million through standby equity distribution agreement
highlights 2 nostra terra oil and gas company plc
directors sir adrian blennerhassett nonexecutive chairman
matt lofgran chief executive officer 
alden mccall chief operating officer
stephen oakes nonexecutive director
secretary international registrars limited
registered office finsgate
57 cranwood street
london
ec1v 9ee
registered number 05338258 england and wales
auditor jeffreys henry llp
finsgate
57 cranwood street
london
ec1v 9ee
nominated adviser shore capital and corporate limited 
bond street house
14 clifford street
london 
w1s 4ju
broker alexander david securities limited
10 finsbury square
london
ec2a 1ad
solicitors ronaldsons llp
55 gower street
london
wc1e 6hq
bankers national westminster bank plc
po box 712
94 moorgate
london
ec2m 6xt
registrars share registrars ltd
suite e first floor
9 lion  lamb yard
farnham
surrey
gu9 7ll
website wwwntogcouk 
company information 3 annual report 2012
dear shareholder
i am pleased to present the annual report and accounts of nostra terra oil and gas company plc for
the year ended 31 december 2012 this was a successful year for nostra terra we continued to
implement our growth strategy expanding both our asset base and our production
exploration  production highlights
a key development in 2012 was our acquisition of a 20 interest in the chisholm trail prospect the
first four wells have all exceeded our expectations contributing to greater revenues for nostra terra
and helping us to pass breakeven on an operational basis in january 2013 a horizontal well in the
warrior prospect began producing in the first half of the year and a well at the bale creek prospect
was producing oil and generating revenue by november the initial verde well has exceeded our
expectations reaching payout within nine months in march 2013 we purchased a 5 working interest
“wi” in the high plains prospect in texas which we have since increased to 20 high plains gives
us a higherrisk exploration opportunity with large upside potential we are now identifying potential
drill targets and expect to have multiple prospect areas
financial highlights
growth in production led to higher revenues which increased from £244000 in 2011 to £352000 in
2012 a rise of 44 we achieved a gross profit of £90000 compared with a loss of £126000 in the
previous year as the company grows we keep tight control of administrative expenses which decreased
by  6 to £876000 this contributed to a reduced loss before tax of £840000 against a loss of
£996000 in 2011
i am pleased to report that as we moved into 2013 production increased significantly enabling us to
achieve break even on an operational basis we were also successful with our litigation with richfield
leading to a judgment enabling us to begin collection
summary
nostra terra made strong progress in 2012 we are encouraged by the start we have made to 2013
and believe we are well positioned to achieve further success i would like to thank our executive
directors matt lofgran and alden mccall for their considerable achievements and their hard work
which includes significant analysis of the many opportunities they decided not to pursue i also wish to
thank nostra terra’s shareholders for their continuing loyalty we look forward to keeping you informed
about our progress
sir adrian blennerhassett
chairman
4 june 2013
chairman’s statement 4 nostra terra oil and gas company plc
chief executive’s review
nostra terra is an exploration and production company focused on finding and producing oil from conventional
reservoirs we accelerate production by applying modern technologies including 3d seismic mapping logging precision
horizontal and vertical drilling and multistage well completions 
we target regions of low political and geological risk specifically the united states midcontinent goldman sachs has
predicted that by 2017 the us will once again be the world’s largest oil producer generating 109m barrels a day this
is the result of highly sophisticated drilling technologies of the types we use which are opening new fields the states
in which we operate – oklahoma colorado kansas and texas – are all achieving their highest daily productions in several
decades because of the widespread application of these technologies
continuing our progress
a significant development in 2012 was our agreement with ward petroleum to acquire an interest in the chisholm trail
project which we announced in august this is our third multiwell drilling project in oklahoma we have a 20 interest
in the overall play with varying wis in the individual wells due to differences in the net acres leased in each well
this play is a good example of how horizontal drilling and completion techniques can revive areas that were thought to
be fully exploited ward has made rapid progress with the first two wells entering production towards the end of 2012
and two further wells now in production the fifth well in which we have a 22 wi has been completed and is
currently in production testing our initial expectation was that each well would produce 200 barrels of oil equivalent
per day “boepd” however all of the first four wells have done considerably better than this and we expect that the
fifth well will demonstrate similar results
an ongoing leasing program has also expanded the prospect holdings the acquisition of additional acreage means that
nostra terra is now exposed to 21 potential drilling locations including the five wells drilled so far
we are excited by the chisholm trail prospect’s potential a view supported by a recent larger acquisition in the play by
gastar exploration limited nysegst as well as other companies recently investing in the area our estimate is that
these wells each need to produce 75000 boe to reach payback and we are encouraged by gastar’s announcement that
it expects to recover several times this from its most recent wells we believe chisholm trail is a lowrisk highreturn
play a reserve report has now been commissioned and is anticipated shortly nostra terra will then be able to put in
place reservebased lending an attractive alternative to more dilutive forms of financing
initial 10day comparative 
production average 
boepd
nostra terra’s 
working interest
well
chisholm trail 1
chisholm trail 2
chisholm trail 3
chisholm trail 4
047 258
555
348
505
016
1258
531
chisholm trail 5 testing 22
chisholm trail 6 elected 50
subject to final elections being concluded and finalisation of working interest percentage 5 annual report 2012
we also made progress with our two other prospects in oklahoma bale creek and warrior nostra terra owns a 30
wi in the bale creek prospect which is operated by pathfinder development capital llc bale creek lies within a highly
productive and extensively mapped trend with multipay potential from as many as eight reservoirs following the
acquisition of 3d seismic data two wells were drilled at bale creek the first well which was horizontal produced oil
in swab testing but the pressure was unusually low while drilling the second well we and our partner saw the
opportunity to test two stacked formations that were prominent anomalies in the 3d seismic interpretation and decided
to continue drilling the well vertically in november we announced positive results from prolonged testing of the second
well which was producing oil and generating revenue work on the first well has been discontinued allowing us to
focus our resources on future wells
in january 2012 nostra terra agreed with crown energy company inc to acquire a 10 wi in the warrior prospect
like bale creek warrior lies within a prolific oil system in oklahoma and contains multiple stacked reservoirs a horizontal
well was drilled in the first half of the year and put into production 
nostra terra owns a 1625 wi in the verde prospect unit which covers 636 acres in colorado and is operated by
plainsmen partners llc at the start of 2012 one vertical well was in operation and producing approximately 50 barrels
of oil per day this well has exceeded our expectations and reached payout within the first nine months of continuous
production 
since the end of the financial year we have made another strategically important acquisition with the purchase of an
initial 5 wi in the high plains program in texas this strengthens our portfolio by giving us a higherrisk exploration
opportunity with the potential for large upside for our shareholders brown and borelli is our highly experienced and
respected operatorpartner
the area of mutual interest “ami” covers 66 contiguous square miles 42000 acres and is in a region where subsurface
mapping 3d seismic vertical and horizontal drilling and completion technologies have achieved varying degrees of
success we aim to increase that success rate by applying a new “proof of concept” with brown and borelli
the first step was to reenter a previously drilled well which we believed to have been misdrilled this reentry confirmed
that the original well had missed its target by a wide margin as a result the partnership are now reprocessing 35000
acres of proprietary seismic data integrating that with 42000 acres of detailed subsurface mapping and identifying
other potential drill targets we expect to identify multiple prospect areas within the ami each of which could comprise
up to 2500 acres and have multiple drilling locations the encouraging results so far have led us to increase our wi to
20
2012 net production
our portfolio of interests has continued to expand and oil and gas production increased during 2012 as shown in the
table below as we move through 2013 it is pleasing that both of these trends have continued enabling us to surpass
break even at the operational level in january a significant milestone in our development
working
interest
ntog
operated
prospect state net production boe
bloom kansas 3192
8
106
2088
4076 100 yes
vintage hills texas 1 no
nesbitt texas 3 no
verde colorado 16 no
59
69
586
331 warrior oklahoma 10 no –
331 bale creek oklahoma 30 no –
212 chisholm trail oklahoma varies no –
– high plains texas 20 no –
2012 2011 6 nostra terra oil and gas company plc
improving financial performance
growth in production led to higher revenues which increased from £244000 in 2011 to £352000 in 2012 a rise of
44 we achieved a gross profit of £90000 compared with a loss of £126000 in the previous year as the company
grows we keep tight control of administrative expenses which decreased by 6 to £876000 this contributed to a
reduced loss before tax of £840000 against a loss of £996000 in 2011
we have continued to put in place the financial resources we need to support our growth in may 2012 we entered
into a 360day loan facility of up to us3 million with ya global master spv ltd “ya global” an investment fund
managed by yorkville advisors llc the initial advance on the loan facility was us1 million and we may request further
advances of up to us2 million the facility attracts interest at 10 per annum
in september we successfully raised finance through two placings allowing us to further fund the drilling campaign in
oklahoma in total we raised £1070000 before expenses by placing 297222223 new shares at 036 pence per share 
since the year end we have raised £502750 under the seda by issuing 123546296 new shares at an average price
of 0407p per share we have used the majority of the proceeds to acquire additional leases and expand the chisholm
trail prospect along with developing further opportunities
also since the year end nostra terra has reached a milestone in its legal proceedings against richfield oil  gas company
formerly hewitt energy group inc on 14 april 2011 richfield issued a us13 million secured loan note to nostra
terra which accrued interest at 10 per annum and matured on 31 january 2012 at a hearing on 1 march 2013
nostra terra’s motion for partial summary judgment went unopposed we have received a judgement against richfield
in excess of us15 million in principal and interest plus an additional amount to be determined to cover the costs of
collection collection has now begun and we will aggressively pursue all remedies available under the judgement which
include garnishment of cash and the forced sale of corporate assets until the entire amount has been collected
an encouraging outlook
nostra terra has made a strong start to 2013 both operationally and financially in january we surpassed breakeven on
an operational basis – a major milestone in our development this was the result of greater than expected production
from the chisholm trail wells combined with production from the rest of our portfolio we expect most of the revenue
from chisholm trail to come through from 2013 onwards
with production now comfortably covering our operating overheads we can apply our operating margins and all new
funds raised to the leasing and drilling of new wells several wells are planned for 2013 within chisholm trail as well as
in other prospects we will continue to minimise overheads and remain focused on growing our production throughout
the year
matt lofgran
chief executive officer
4 june 2013
chief executive’s review continued 7 annual report 2012
directors’ report
the directors present their report with the financial statements of nostra t erra oil and gas company plc “the company”
and its subsidiaries collectively “the group” for the year ended 31 december 2012
principal activity
the group’s principal activity is the exploitation of hydrocarbon resources in the us midcontinent
review of business and future developments
the results for the year and financial position of the company and the group are shown in the financial statements on
pages 16 to 25 and are noted in the chairman’s statement on page 3 and the chief executive’s review on pages 4 to 6
key performance indicators
at this stage in the company’s development the directors regularly monitor key performance indicators associated with
managing liquid resources namely cash flows and bank balances general administrative expenses which are tightly
controlled and the level of production
key risks and uncertainties
the key risk in exploration and production is the technical risk of not finding hydrocarbons when an exploration well is
drilled while the us midcontinent is a proven hydrocarbon region and is seeing resurgence through the application of
new drilling and well completion technologies there are environmental and economic risks as there are in any
hydrocarbon region
results and dividends
the loss for the year was £840000 which has been allocated against reserves no dividends will be distributed for the
year ended 31 december 2012
directors
the following directors have held office since 1 january 2012
a m blennerhassett 
m b lofgran 
s v oakes
a mccall 
sir adrian blennerhassett will retire at the company’s forthcoming annual general meeting under the company’ s articles
of association and being eligible offers himself for reelection 
the directors’ remuneration for the year is summarised as follows
salaries fees total
££ £
a m blennerhassett – 18000 18000 
m b lofgran 102053 – 102053 
s v oakes – 18000 18000 
a b mccall 92775 – 92775 
194828 36000 230828
there were no benefitinkind payments during the year  8 nostra terra oil and gas company plc
311212 010112
no of ordinary 
shares of 
01p each
percentage of 
issued share 
capital
no of ordinary 
shares of 
01p each
percentage of 
issued share 
capital
a m blennerhassett
m b lofgran
s v oakes
a b mccall
6580000
141842506
14166666
800000
027
577
058
003
6580000
79000000
14166666
–
034
405
073
–
share options were issued in 2012 as shown below resulting in a charge for the year of £115160 further details can
be found at note 22 to these accounts
at 31 december 2012 the directors’ beneficial interests in the company’s issued share capital were as follows
the numbers of options outstanding to the directors at 31 december 2012 were as follows
directors’ report continued
exercise price number of options
m b lofgran
held at 010112 01p 217842506
exercised in year 217842506
awarded 240112 041p 14000000
awarded 190712 047p 70000000
held at 311212 84000000
a b mccall
held at 010112 052p 40000000
lapsed in year 30000000
awarded 240112 041p 14000000
awarded 190712 047p 100000000
held at 311212 124000000
a m blennerhassett
held at 010112 – –
awarded 240112 041p 4000000
held at 311212 4000000
s v oakes
held at 010112 037p 3000000
awarded 240112 041p 6000000
held at 311212 9000000 9 annual report 2012
remuneration committee and policy
the remuneration committee takes into account both group and individual performance market value and sector
conditions in determining directors’ remuneration the group’s policy is to pay only minimum salaries compared with
peer companies in the oil and gas sector until the group has established a good position with acreage assets income
and cash at hand all current salaries are without pension benefits
substantial shareholders
as at 4 june 2013 the company was aware of the following interests in its issued share capital
no of ordinary     percentage of          
shares of issued share
01p each capital
td direct investing nominees europe limited 350812531 1355
barclayshare nominees limited 337885222 1305
hsdl nominees limited 268937553 1039
jim nominees limited 171370937 662
investor nominees limited 164594090 636
hsbc client holdings nominee uk limited 156339552 604
m b lofgran 141842506 548
l r nominees limited 134172627 518
pershing nominees limited 104862226 405
hargreaves lansdown nominees limited 102069032 394
share nominees ltd 85939536 332
political and charitable contributions
the group made no political or charitable contributions during the year
group policy on supplier payment
the group’s normal practice is to pay suppliers in accordance with agreed terms provided the supplier has performed
in accordance with the relevant terms and conditions the group does not follow any code or statement policy creditor
days at the end of the year were 201 2011 30 days
events after the reporting period
refer to note 25 for details
publication of accounts on company website
the company publishes financial statements on its website the directors are responsible for the website’s maintenance
and integrity and their responsibility also extends to the financial statements contained therein
indemnity of officers
the group may purchase and maintain for any director or officer insurance against any liability the group maintains
appropriate insurance cover against legal action bought against its directors and officers
financial instruments
the group does not have formal policies on interest rate risk or foreign currency risk the group is exposed to foreign
currency risk on sales and purchases that are denominated in a currency other than pounds sterling £ the group
maintains a natural hedge that minimises its foreign exchange exposure by matching foreign currency income with
foreign currency costs
for the time being the group does not consider it necessary to enter into foreign exchange contracts to manage its
foreign currency risk given the nature of its business 10 nostra terra oil and gas company plc
listing
the company’s ordinary shares have traded on london’s alternative investment market since 20 july 2007 shore capital
and corporate limited is the company’s nominated advisor and alexander david securities limited was the company’s
sole broker during the year on 15 february 2013 the company announced the appointment of xcap securities plc as
joint broker
the closing midmarket price at 31 december 2012 was 0472p 2011 039p
going concern
after making appropriate enquiries the directors consider that the group has adequate resources to continue in
operational existence for the foreseeable future for this reason they continue to adopt the going concern basis in
preparing the financial statements
statement of directors’ responsibilities
the directors are responsible for preparing the financial statements in accordance with applicable law and regulations
company law requires the directors to prepare financial statements for each financial year under that law the directors
have elected to prepare the financial statements in accordance with international financial reporting standards ifrss
as adopted for use in the european union the financial statements are required by law to give a true and fair view of
the state of affairs of the company and the group and of the profit or loss of the group for that year in preparing these
financial statements the directors are required to
• select suitable accounting policies and then apply them consistently
• make judgments and estimates that are reasonable and prudent
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business and
• follow ifrs as adopted by the european union
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time
the financial position of the company and the group and to enable them to ensure that the financial statements comply
with the companies act 2006 they are also responsible for safeguarding the assets of the company and the group
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
statement as to disclosure of information to auditors
so far as the directors are aware there is no relevant audit information as defined by section 418 of the companies act
2006 of which the group’s auditors are unaware and each director has taken all the steps that he ought to have taken
as a director in order to make himself aware of any relevant audit information and to establish that the group’s auditors
are aware of that information
auditors
in accordance with section 485 of the companies act 2006 a resolution that jeffreys henry llp be reappointed as
auditors of the company will be put to the annual general meeting
on behalf of the board
m b lofgran
director
4 june 2013
directors’ report continued 11 annual report 2012
corporate governance report
the directors recognise the importance of sound corporate governance commensurate with the group’s size and
shareholders’ interests as the group grows policies and procedures that reflect the frc’s uk corporate governance
code will be developed so far as is practicable and appropriate the directors will take steps to comply with the uk
corporate governance code
the board of directors
the board comprises two executive directors and two nonexecutive directors it meets at least four times a year as
issues arise which require board attention the board has a formal schedule of matters specially referred to it for decision
the directors are responsible for
• management structure and appointments
• consideration of strategy and policy
• approval of major capital investments and transactions and
• significant financing matters
the board has audit remuneration and nomination committees the roles and responsibilities of which are discussed
below
audit committee
the audit committee comprises a m blennerhassett as chairman and s v oakes both have considerable and relevant
financial experience
the audit committee has terms of reference agreed by the board and meets at least twice a year the committee provides
an opportunity for reporting by the company’s auditors and is responsible for
• monitoring in discussion with the auditors the integrity of the financial statements and announcements of the
company
• reviewing the company’s internal financial controls and risk management systems and
• reviewing and monitoring the external auditor’s independence and the objectivity and effectiveness of the audit
process taking into consideration relevant uk and other professional and regulatory requirements
the audit committee is also responsible for making recommendations to the board to be put to shareholders for their
approval in general meeting in relation to the appointment reappointment and removal of the external auditors and to
approve the external auditors’ remuneration and terms of engagement other responsibilities include considering annually
whether there is a need for an internal audit function and making a recommendation to the board and reviewing
arrangements by which the group’s staff will be able to raise concerns about possible improprieties in matters of financial
reporting or other matters related to the group 12 nostra terra oil and gas company plc
remuneration and nomination committees
the remuneration and nomination committees which meet at least twice a year consist of a m blennerhassett as
chairman and s v oakes based on the terms of reference approved by the board the remuneration committee is
responsible for
• determining and agreeing with the board the framework or broad policy for the remuneration of the chief executive
officer the chairman and other members it is designated to consider
• setting the remuneration for all executive directors the chairman and the company secretary
• recommending and monitoring the level and structure of remuneration for senior management
• determining targets for any performancerelated pay schemes operated by the group
• determining the policy and scope of pension arrangements for each executive director and
• ensuring that contractual terms on termination and any payments made are fair to the individual and the company
the remuneration committee determines the terms and conditions of service of executive directors this includes
agreeing the policy for authorising claims for expenses from the chief executive officer and the chairman and within
the terms of the agreed policy recommending the total individual remuneration package of each executive director
including where appropriate bonuses incentive payments and share options 
the nomination committee is responsible for ensuring all director appointments are considered by the committee before
their formal recommendation to the board for approval
relations with shareholders
communications with shareholders are very important and are given a priority the company maintains a website
wwwntogcouk to improve information flow to shareholders and potential investors it contains information about
the company’s activities and annual and interim reports shareholders are welcome to make enquiries on any matters
relating to the business and to their shareholdings the company encourages shareholders to attend the annual meeting
at which they will be given the opportunity to put questions to the chairman and other members of the board
internal financial control
the board is responsible for establishing and maintaining the company’s system of internal controls and for reviewing
their effectiveness they are designed to safeguard the company’s assets and to ensure the reliability of the financial
information for both internal use and external publication the controls that include inter alia financial operational and
compliance matters and management are reviewed on an ongoing basis 
a system of internal control can provide only reasonable and not absolute assurance that material financial irregularities
will be detected or that risk of failure to achieve business objectives is eliminated the board has considered the need
for an internal audit function but because of the size and nature of its operations does not consider it necessary at this
time
corporate governance report continued 13 annual report 2012
board of directors
sir adrian blennerhassett  nonexecutive chairman
previous positions held by sir adrian 73 include general manager for claremount oil  gas limited and technical
director at peninsula petroleum limited more recently he had 11 years’ experience in corporate finance with anglo
european amalgamations limited and chesham amalgamations and investments limited he studied geology at mcgill
university in montreal has an msc in geology from imperial college london and an mba from cranfield school of
business management
matt lofgran  chief executive officer
matt lofgran 38 has wide experience of business development in the energy real estate and communications sectors
prior to becoming ceo of nostra terra in july 2009 he was with robson energy llc latterly as vice president of
international business development in this capacity he launched the oil and gas field services and coal divisions and
was responsible for extending robson energy’s activities into mexico mr lofgran holds a bachelor of business
management degree from the university of phoenix and a global mba from thunderbird school of global management
alden mccall  chief operating officer
alden branine mccall 62 has over 26 years’ experience of project management business development capital
acquisition and consulting in oil and gas exploration and new production technologies prior to joining nostra terra he
was principal and general manager of dallasbased amx consulting services llc delivering technical and commercial
expertise to both public and private companies engaged in conventional and unconventional petroleum exploration and
production mr mccall is a certified petroleum geologist and is a member of the american association of petroleum
geologists the society of petroleum engineers the oklahoma geological society the fort worth geological society and
the houston geological society
stephen vaughan oakes  nonexecutive director
stephen oakes 57 has over 35 years’ experience in financial markets and is a fellow of the securities institute he is a
former chief executive officer hsbc investment management since 2003 he has worked with a number of smaller
aim and plus marketsquoted companies 14 nostra terra oil and gas company plc
independent auditors’ report 
to the shareholders of nostra terra oil and gas company plc
we have audited the group and parent company financial statements of nostra terra oil and gas company plc for the
year ended 31 december 2012 which comprise the consolidated income statement the consolidated statement of
comprehensive income the consolidated and parent company statements of financial position the consolidated and
parent company statements of cash flow consolidated and company statements of changes in equity and related notes
the financial reporting framework that has been applied in their preparation is applicable law and international financial
reporting standards ifrss as adopted by the european union and as regards the parent company financial statements
as applied in accordance with the provisions of the companies act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the
companies act 2006 our audit work has been undertaken so that we might state to the company’s members those
matters we are required to state to them in an auditors’ report and for no other purpose to the fullest extent permitted
by law we do not accept or assume responsibility to anyone other than the company and the company’s members as a
body for our audit work for this report or for the opinions we have formed 
respective responsibilities of directors and auditors 
as explained more fully in the statement of directors’ responsibilities the directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
international standards on auditing uk and ireland those standards require us to comply with the auditing practices
board’s ethical standards for auditors 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or
error this includes an assessment of whether the accounting policies are appropriate to the group’s and the parent
companys circumstances and have been consistently applied and adequately disclosed the reasonableness of significant
accounting estimates made by the directors and the overall presentation of the financial statements in addition we
read all financial and nonfinancial information in the chairman’s statement chief executive’s review directors’ report
and corporate governance report to identify material inconsistencies with the audited financial statements if we become
aware of any apparent material misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion
• the financial statements give a true and fair view of the state of the group’s and parent companys affairs as at 
31 december 2012 and of the group’s loss for the year then ended
• the group financial statements have been properly prepared in accordance with international financial reporting
standards as adopted by the european union 
• the parent company financial statements have been properly prepared in accordance with ifrs’s as adopted by the
european union and as applied in accordance with the provisions of the companies act 2006and
• the financial statements have been properly prepared in accordance with the companies act 2006
opinion on other matter prescribed by the companies act 2006 
in our opinion the information given in the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements 15 annual report 2012
matters on which we are required to report by exception 
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to
you if in our opinion
• adequate accounting records have not been kept by the parent company or returns adequate for audit have not
been received from branches not visited by us or 
• the parent company financial statements are not in agreement with the accounting records and returns or 
• certain disclosures of directors remuneration specified by law are not made or 
• we have not received all the information and explanations we require for our audit
david warren
senior statutory auditor
for and on behalf of jeffreys henry llp  statutory auditor 
finsgate
57 cranwood street
london
ec1v 9ee
united kingdom
4 june 2013 16 nostra terra oil and gas company plc
consolidated income statement
for the year ended 31 december 2012
2012 2011
notes £000 £000
revenue 352 244
cost of sales                         262 370
gross profitloss 90 126
share based payment 115 –
administrative expenses 876 933
operating loss 5 901 1059
finance income 4 89 63
finance expense 4 28 –
loss before tax 840 996      
tax expense recovery 6 – –
loss for the year 840 996      
attributable to
owners of the company 840 996      
earnings per share expressed
in pence per share
continued operations
basic and diluted pence 8 0039 0056 17 annual report 2012
consolidated statement of comprehensive income
for the year ended 31 december 2012
2012 2011
£000 £000
loss for the year 840 996
other comprehensive income
currency translation differences – –
total comprehensive income for the year 840 996
total comprehensive income attributable to
owners of the company 840 996 18 nostra terra oil and gas company plc
consolidated statement of changes in equity
for the year ended 31 december 2012
share share share translation retained total
capital premium options reserves losses
reserve
£000 £000 £000 £000 £000 £000
as at 1 january 2011 1550 6842 – 12 5909 2495
shares issued 400 1669 – – – 2069
share issue costs – 110 – – – 110
loss after tax for the year – – – – 996 996
as at 31 december 2011 1950 8401 – 12 6905 3458
shares issued 515 773 – – – 1288
share issue costs – 70 – – – 70
foreign exchange translation – – – 40 – 52
loss after tax for the year – – – – 840 840
share based payments – – 115 – – 115
as at 31 december 2012 2465 9104 115 28 7745 3899
share capital is the amount subscribed for shares at nominal value
retained loss represents the cumulative losses of the group attributable to owners of the company
share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares
net of share issue expenses share issue expenses in the year comprise costs incurred in respect of the issue of new
shares on the london stock exchange’s aim market
translation reserves arise on consolidation of the translation of the subsidiary’s balance sheet at the closing rate of
exchange and its income statement at the average rate 19 annual report 2012
company statement of changes in equity
for the year ended 31 december 2012
share share retained total
capital premium losses
£000 £000 £000 £000
as at 1 january 2011 1550 6842 5897 2495
shares issued 400 1669 – 2069
share issue costs – 110 – 110
loss after tax for the year – – 285 285
as at 31 december 2011 1950 8401 6182 4169
shares issued 515 773 – 1288
share issue costs – 70 – 70
loss after tax for the year – – 362 362
as at 31 december 2012 2465 9104 6544 5025
share capital is the amount subscribed for shares at nominal value
retained loss represents the cumulative losses of the company attributable to owners of the company
share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares
net of share issue expenses share issue expenses in the year comprise costs incurred in respect of the issue of new
shares 20 nostra terra oil and gas company plc
consolidated statement of ﬁnancial position
31 december 2012
2012 2011
notes £000 £000
assets
noncurrent assets
goodwill 9 – –
other intangibles 10 3393 1221
property plant and equipment
– oil and gas assets 11 468 220
– others 11 – –
3861 1441
current assets
trade and other receivables 13 1089 974
deposits and prepayments 65 11
cash and cash equivalents 14 309 1457
1463 2442
liabilities
current liabilities
trade and other payables 15 815 57
financial liabilities – borrowings 16 598 
1413 57
net current assets 50 2385
noncurrent liabilities
financial liabilities – borrowings 16 – 368
net assets 3911 3458
equity and reserves
called up share capital 17 2465 1950
share premium 18 9104 8401
translation reserves 18 28 12
share option reserve 22 115 –
retained losses 18 7745 6905
3911 3458
the financial statements were approved and authorised for issue by the board of directors on 4 june 2013 and were
signed on its behalf by
m b lofgran
director
company registered number 05338258 21 annual report 2012
the financial statements were approved and authorised for issue by the board of directors on 4 june 2013 and were
signed on its behalf by 
m b lofgran
director
company registered number 05338258
company statement of ﬁnancial position
31 december 2012
2012 2011
notes £000 £000
assets
noncurrent assets
fixed asset investments 12 5913 3951
5913 3951
current assets
trade and other receivables 13 7 49
cash and cash equivalents 14 12 193
19 242
liabilities
current liabilities
trade and other payables 15 547 24                               
financial liabilities – borrowings 16 246 –
793 24              
net current assets 774 218      
net assets 5139 4169
equity and reserves
called up share capital 17 2465 1950
share premium 18 9104 8401
share option reserve 22 115 –
retained losses 18 6545 6182
5139 4169 22 nostra terra oil and gas company plc
consolidated statement of cash ﬂows 
for the year ended 31 december 2012
2012 2011
notes £000 £000
cash flows from operating activities
cash generatedconsumed by operations 1 68 1223
cash generatedconsumed by operations 68 1223
cash flows from investing activities
purchase of intangibles – new oil and gas properties 2215 8
purchase of plant and equipment 308 9
interest received 89 –
net cash from investing activities 2434 1
cash flows from financing activities
issue of new shares 1218 1959
new borrowing net ––
net cash from financing activities 1218 1959
increasedecrease in cash and cash equivalents 1148 737
cash and cash equivalents at beginning of year 14 1457 720
cash and cash equivalents at end of year 309 1457
represented by
cash at bank 14 309 1457 23 annual report 2012
note to the consolidated statement of cash ﬂows 
for the year ended 31 december 2012
1 reconciliation of loss before tax to cash generated from operations
2012 2011
£000 £000
loss before tax for the year 840 996
depreciation of property plant and equipment 62  34
amortisation of intangibles 41 2
foreign exchange lossgains noncash items 40 47
finance income 89 –
share based payment 115 –
operating cash flows before movements in working capital 751 913
decrease increase in receivables 170 191
increase decrease in payables 989 119
cash consumed by continuing operations 68 1223 24 nostra terra oil and gas company plc
company statement of cash ﬂows 
for the year ended 31 december 2012
2012 2011
notes £000 £000
cash consumed by operations 1 563 391
net cash from operating activities 563 391
cash flows from investing activities
interest received ––
net cash from investing activities – –
cash flows from financing activities
inter group loan advances 1962 1916
issue of new shares 1218 1959
net cash from financing activities 744 43
increasedecrease in cash and cash equivalents 181 348
cash and cash equivalents at beginning of year 14 193 541
cash and cash equivalents at end of year 12 193
represented by
cash at bank 14 12 193 25 annual report 2012
note to the company statement of cash ﬂow 
for the year ended 31 december 2012
1 reconcilation of loss before tax to cash generated from operations
2012 2011
£000 £000
loss before tax for the year 363 284
impairment of cost of investments – –
share based payment 115 –
operating cash flows before movements in working capital                         248 284
increasedecrease in receivables 42 15
increasedecrease in payables 769 122
cash consumed by continuing operations 563 391 26 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
general information
nostra terra oil and gas company plc is a company incorporated in england and wales and quoted on the aim market
of the london stock exchange the address of the registered office is disclosed on the company information page of
this annual report the principal activity of the group is described in the directors’ report 
1 accounting policies
going concern
the financial statements have been prepared on the assumption that the group is a going concern when assessing the
foreseeable future the directors have looked at a period of 12 months from the date of approval of this report 
the group’ s business activities together with the factors likely to affect its future development performance and position
are set out in the chief executive officer’s report and directors report in addition note 19 to the financial statements
includes the group’s objectives policies and processes for managing its capital its financial risk management objectives
and its exposures to credit risk and liquidity risk
the group’s forecasts and projections taking account of reasonable possible changes in trading performance show that
the group should be able to operate within the level of its current cash resources in addition the group has entered
into a £5 million financing agreement expandable to £10 million and us1 million promissory note expandable to
us3 million with yorkville advisors
after making enquiries the directors have a reasonable expectation that the company and group have adequate
resources to continue in operational existence for the foreseeable future accordingly they continue to adopt the going
concern basis in preparing the annual report and financial statements
basis of preparation
these financial statements have been prepared in accordance with international financial reporting standards and ifric
interpretations issued by the international accounting standards board iasb as adopted by the european union and
with those parts of the companies act 2006 applicable to companies reporting under ifrs the financial statements
have been prepared under the historical cost convention 
new and amended standards adopted by the company
• there are no ifrs or ifric interpretations that are effective for the first time in this financial period that would be
expected to have a material impact on the group
standards interpretations and amendments to published standards that are not yet effective 
the following new standards amendments to standards and interpretations have been issued but are not effective for
the financial year beginning 1 january 2012 and have not been early adopted
• ifrs 9 ‘financial instruments classification and measurement’ as issued reflects the first phase of the iasb work on
the replacement of ias 39 and applies to classification and measurement of financial assets as defined in ias 39 the
standard is effective for annual periods beginning on or after 1 january 2015 in subsequent phases the iasb will
address classification and measurement of financial liabilities hedge accounting and derecognition the adoption of
the first phase of ifrs 9 might have an effect on the classification and measurement of the company’s assets at this
juncture it is difficult for the company to comprehend the impact on its financial position and performance
there are no other ifrs or ifric interpretations that are not yet effective that would be expected to have a material
impact on the group 27 annual report 2012
basis of consolidation
where the company has the power either directly or indirectly to govern the financial and operating policies of another
entity or business so as to obtain benefits from its activities it is classified as a subsidiary the consolidated financial
statements present the results of the company and its subsidiaries “the group” as if they formed a single entity
intercompany transactions and balances between group companies are therefore eliminated in full
the consolidated financial statements incorporate the results of business combinations using the purchase method in
the statement of financial position the acquiree’s identifiable assets liabilities and contingent liabilities are initially
recognised at their fair values at the acquisition date the results of acquired operations are included in the consolidated
statement of comprehensive income from the date on which control is obtained they are deconsolidated from the date
control ceases
subsidiaries
the purchase method of accounting is used to account for the acquisition of subsidiaries by the group the cost of an
acquisition is measured as the fair value of the assets given equity instruments issued and liabilities incurred or assumed
at the date of exchange plus costs directly attributable to the acquisition identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date
irrespective of the extent of any minority interest the excess of the cost of acquisition over the fair value of the group’s
share of the identifiable net assets acquired is recorded as goodwill if the cost of acquisition is less than the fair value
of the net assets of the subsidiary acquired the difference is recognised directly in the income statement
intercompany transactions balances and unrealised gains on transactions between group companies are eliminated
unrealised losses are also eliminated but considered an impairment indicator of the asset transferred accounting policies
of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group
associates
an associate undertaking “associate” is an enterprise over whose financial and operating policies the group has the
power to exercise significant influence and which is neither a subsidiary nor a joint venture of the group the equity
method of accounting for associates is adopted in the group financial statements such that they include the group’s
share of operating profit or loss exceptional items interest taxation and net assets of associates “the equity method”
in applying the equity method account is taken of the group’s share of accumulated retained earnings and movements
in reserves from the effective date on which an enterprise becomes an associate and up to the effective date of disposal
the share of associated retained earnings and reserves is generally determined from the associate’s latest interim or final
financial statements where the group’s share of losses of an associate exceeds the carrying amount of the associate
the associate is carried at nil additional losses are only recognised to the extent that the group has incurred obligations
or made payments outside the course of ordinary business on behalf of the associate
joint activity agreement
the group’ s interest in the joint activity agreement “jaa” see note 10 is accounted for by proportionate consolidation
the group combines its share of the jaa’s individual income and expenses assets and liabilities and cash flows on a line
by line basis with similar items in the group’s financial statements the group recognises the portion of gains and losses
on the sale of assets by the group to jaa that is attributable to the other ventures the group does not recognise its
share of profits or losses from jaa that result from the group’s purchase of assets from jaa until it resells the assets to
an independent party however a loss on the transaction is recognised immediately if the loss provides evidence of a
reduction in the net realisable value of current assets or an impairment loss 28 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
1 accounting policies continued
intangible assets
goodwill 
goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the net identifiable
assets of the acquired subsidiary or associate at the date of acquisition goodwill on acquisitions of subsidiaries is included
in ‘intangible assets’ separately recognised goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses impairment losses on goodwill are not reversed gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold
goodwill is allocated to cashgenerating units for the purpose of impairment testing the allocation is made to those
cashgenerating units or groups of cashgenerating units that are expected to benefit from the business combination in
which the goodwill arose the group allocates goodwill to each business segment in each country in which it operates
impairment of nonfinancial assets
assets that have an indefinite useful life for example goodwill are not subject to amortisation and are tested annually
for impairment assets that are subject to amortisation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable an impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount the recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use for the purposes of assessing impairment assets are grouped at the lowest
levels for which there are separately identifiable cash flows cashgenerating units nonfinancial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date
property plant and equipment
tangible noncurrent assets are stated at historical cost less depreciation historical cost includes expenditure that is
directly attributable to the acquisition of the items   
subsequent costs are included in the asset’s carrying amount or recognised as a separate asset as appropriate only
when it is probable that future economic benefits associated with the item will flow to the group and the cost of the
item can be measured reliably the carrying amount of the replaced part is derecognised all other repairs and
maintenance are charged to the income statement during the financial year in which they are incurred depreciation is
provided at the following annual rates in order to write off each asset over its estimated useful life 
plant and machinery – 20 on cost
the assets’ residual values and useful economic lives are reviewed and adjusted if appropriate at each balance sheet
date an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable value
gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within other losses or gains in the income statement when revalued assets are sold the amounts included in other
reserves are transferred to retained earnings
investments
investments are stated at cost less provision for any impairment value
revenue recognition
revenue comprises the fair value of the consideration received or receivable for the sale of hydrocarbons and services in
the ordinary course of the group’s activities revenue is shown net of valueadded tax returns rebates and discounts
and after eliminating sales within the group revenue is recognised when the oil and gas produced is despatched and
received by the customers 29 annual report 2012
functional currency translation
i functional and presentation currency
items included in the financial statements of the group are measured using the currency of the primary economic
environment in which the entity operates the functional currency which is mainly united states dollars us the
financial statements are presented in pounds sterling £ which is the group’s presentation currency
ii    transactions and balances
foreign currency transactions are translated into the presentational currency using exchange rates prevailing at the
dates of the transactions foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the income statement
iii group companies
the results and financial position of all group entities none of which has the currency of a hyperinflationary
economy that have a functional currency different from the presentation currency are translated into the
presentation currency as follows
a assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that 
balance sheet
b income and expenses for each income statement are translated at average exchange rates unless this average
is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates in
which case income and expenses are translated at the rate on the dates of the transactions and
c all resulting exchange differences are recognised as a separate component of equity
on consolidation exchange differences arising from the translation of the net investment in foreign operations and of
borrowings and other currency instruments designated as hedges of such investments are taken to shareholders’ equity
when a foreign operation is partially disposed of or sold exchange differences that were recorded in equity are recognised
in the income statement as part of the gain or loss on sale
goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of
the foreign entity and translated at the closing rate
taxation
the tax expense represents the sum of the tax currently payable and deferred tax the tax currently payable is based on
the taxable profit for the year taxable profit differed from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are
never taxable or deductible the entity’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date
deferred tax
deferred income tax is provided in full using the liability method on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements however the deferred income tax
is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss deferred income
tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled
deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised 30 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
1 accounting policies continued
operating leases
rental leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases payments made under operating leases net of any incentives received from the lessor are charged
to the income statement
cash and cash equivalents 
cash and cash equivalents include cash in hand deposits held on call with banks other shortterm highly liquid
investments with original maturities of three months or less and bank overdrafts  
trade receivables
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method less provision for impairment a provision for impairment is established when there is objective evidence
that the group will not be able to collect all amounts due according to the original terms of the receivables significant
financial difficulties of the debtor probability that the debtor will enter bankruptcy or financial reorganisation and default
or delinquency in payments are considered indicators that the trade receivable is impaired
trade payables
trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method
borrowings
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently stated at
amortised cost any difference between the proceeds net of transaction costs and the redemption value is recognised
in the income statement over the year of the borrowings using the effective interest method
borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance sheet date
financial instruments
nonderivative financial instruments comprise investments in equity and debt securities trade and other receivables
cash and cash equivalents loans and borrowings and trade and other payables
nonderivative financial instruments are recognised initially at fair value plus for instruments not at fair value through
profit or loss any directly attributable transactions costs except as described below subsequent to initial recognition
nonderivative financial instruments are measured as described below
a financial instrument is recognised when the group becomes a party to the contractual provisions of the instrument
financial assets are derecognised if the group’s contractual rights to the cash flows from the financial assets expire or if
the group transfers the financial assets to another party without retaining control or substantially all risks and rewards
of the asset regular way purchases and sales of financial assets are accounted for at trade date ie the date that the
group commits itself to purchase or sell the asset financial liabilities are derecognised if the group’s obligations specified
in the contract expire or are discharged or cancelled 
fair values 
the carrying amounts of the financial assets and liabilities such as cash and cash equivalents receivables and payables
of the group at the balance sheet date approximated their fair values due to the relatively shortterm nature of these
financial instruments
the company provides financial guarantees to licensed banks for credit facilities extended to a subsidiary company the
fair value of such financial guarantees is not expected to be significantly different as the probability of the subsidiary
company defaulting on the credit lines is remote 31 annual report 2012
sharebased compensation
the fair value of the employee and suppliers services received in exchange for the grant of the options is recognised as
an expense the total amount to be expensed over the vesting year is determined by reference to the fair value of the
options granted excluding the impact of any nonmarket vesting conditions for example profitability and sales growth
targets nonmarket vesting conditions are included in assumptions about the number of options that are expected to
vest at each balance sheet date the entity revises its estimates of the number of options that are expected to vest it
recognises the impact of the revision to original estimates if any in the income statement with a corresponding
adjustment to equity
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and
share premium when the options are exercised
the fair value of sharebased payments recognised in the statement of comprehensive income is measured by use of the
black scholes model which takes into account conditions attached to the vesting and exercise of the equity instruments
the expected life used in the model is adjusted based on management’s best estimate for the effects of non
transferability exercise restrictions and behavioural considerations the share price volatility percentage factor used in
the calculation is based on management’s best estimate of future share price behaviour and is selected based on past
experience future expectations and benchmarks against peer companies in the industry
share capital
ordinary shares are classified as equity 
incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction net of
tax from the proceeds
oil and gas assets 
the group applies the successful efforts method of accounting for oil and gas assets and has adopted ifrs 6 exploration
for and evaluation of mineral resources
exploration and evaluation “ee” assets
under the successful efforts method of accounting all licence acquisition exploration and appraisal costs are initially
capitalised in well field or specific exploration cost centres as appropriate pending determination expenditure incurred
during the various exploration and appraisal phases is then written off unless commercial reserves have been established
or the determination process has not been completed
prelicence costs
costs incurred prior to having obtained the legal rights to explore an area are expensed directly to the income statement
as they are incurred
exploration and evaluation “ee” costs
costs of ee are initially capitalised as ee assets payments to acquire the legal right to explore together with the
directly related costs of technical services and studies seismic acquisition exploratory drilling and testing are capitalised
as intangible ee assets
tangible assets used in ee activities such as the group’s drilling rigs seismic equipment and other property plant and
equipment used by the company’s exploration function are classified as property plant and equipment however to
the extent that such a tangible asset is consumed in developing an intangible ee asset the amount reflecting that
consumption is recorded as part of the cost of the intangible asset such intangible costs include directly attributable
overheads including the depreciation of property plant and equipment utilised in ee activities together with the cost
of other materials consumed during the exploration and evaluation phases
ee costs are not amortised prior to the conclusion of appraisal activities 32 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
1 accounting policies continued
treatment of ee assets at conclusion of appraisal activities
intangible ee assets relating to each exploration licenceprospect are carried forward until the existence or otherwise
of commercial reserves has been determined subject to certain limitations including review for indications of impairment
if commercial reserves are discovered the carrying value after any impairment loss of the relevant ee assets is then
reclassified as development and production assets if however commercial reserves are not found the capitalised costs
are charged to expense after conclusion of appraisal activities
development and production assets
development and production assets are accumulated generally on a fieldbyfield basis and represent the cost of
developing the commercial reserves discovered and bringing them into production together with the ee expenditures
incurred in finding commercial reserves transferred from intangible ee assets as outlined above
the cost of development and production assets also includes the cost of acquisitions and purchases of such assets
directly attributable overheads and the cost of recognising provisions for future restoration and decommissioning
depletion amortisation and impairment of oil and gas assets
all expenditure carried within each field is amortised from the commencement of production on a unit of production
basis which is the ratio of oil and gas production in the period to the estimated quantities of commercial reserves at the
end of the period plus the production in the period on a fieldbyfield basis costs used in the unit of production
calculation comprise the net book value of capitalised costs plus the estimated future field development costs to access
the related commercial reserves changes in the estimates of commercial reserves or future field development costs are
dealt with prospectively
where there has been a change in economic conditions that indicates a possible impairment in an oil and gas asset the
recoverability of the net book value relating to that field is assessed by comparison with the estimated discounted future
cash flows based on management’s expectations of future oil and gas prices and future costs any impairment identified
is charged to the income statement as additional depletion and amortisation where conditions giving rise to impairment
subsequently reverse the effect of the impairment charge is also reversed as a credit to the income statement net of
any depreciation that would have been charged since the impairment
commercial reserves
commercial reserves are proven and probable oil and gas reserves which are defined as the estimated quantities of
crude oil natural gas and natural gas liquids which geological geophysical and engineering data demonstrate with a
specified degree of certainty to be recoverable in future years from known reservoirs and which are considered
commercially producible 33 annual report 2012
critical accounting estimates and judgments
the preparation of consolidated financial statements requires the group to make estimates and assumptions that affect
the application of policies and reported amounts estimates and judgments are continually evaluated and are based on
historical experience and other factors including expectations of future events that are believed to be reasonable under
the circumstances actual results may differ from these estimates the estimates and assumptions which have a significant
risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below
a impairment of investments
costs of investments are reviewed for impairment if events or changes in circumstances indicate that the carrying
amount may not be recoverable when a review for impairment is conducted the recoverable amount is determined
based on value in use calculations prepared on the basis of management’s assumptions and estimates for each cash
generating unit
b impairment of property plant and equipment
property plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the
carrying amount may not be recoverable when a review for impairment is conducted the recoverable amount is
determined based on value in use calculations prepared on the basis of management’s assumptions and estimates
c recoverability of exploration and evaluation costs
ee assets are assessed for impairment when circumstances suggest that the carrying amount may exceed its
recoverable value this assessment involves judgment as to i the likely future commerciality of the asset and when
such commerciality should be determined and ii future revenues and costs pertaining to the asset in question
and the discount rate to be applied to such revenues and costs for the purpose of deriving a recoverable value 
d sharebased payments
note 1 sets out the group’s accounting policy on sharebased payments specifically in relation to the share options
and warrants that the company has granted the key assumptions underlying the fair value of such sharebased
payments are discussed in note 22 the fair value amounts used by the group have been derived by external
consultants using standard recognised valuation techniques 34 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
us mid ukraine head total
continent office
2012 2012 2012 2012
£000 £000 £000 £000
segment results – 2012
revenue
total 352 – – 352
inter company ––––
revenue 352 – – 352
operating loss before depreciation 
amortisation sharebased payment 
charges and restructuring costs 798 – – 798
depreciation of tangibles 62 – – 62
amortisation of intangibles 41 – – 41
operating loss 901 – – 901
realised exchange lossgain 44 16 – 28
finance income 89 – – 89
gain loss before taxation 856 16 – 840
segment assets
property plant and equipment 468 – – 468
intangible assets 3393 – – 3393
cash and cash equivalents 309 – – 309
other assets 1154 – – 1154
5324 – – 5324
2 segmental analysis
in the opinion of the directors the group has one class of business being the exploitation of hydrocarbon resources
the group’s primary reporting format is determined by geographical segment according to the location of the
hydrocarbon assets the group’s reportable segments under ifrs 8 in the year are as follows
united kingdom being the head office
ukraine a 25 per cent profit share in the onshore oktyabrskoe oil field
us midcontinent properties at year end included the following
i kansas 100 working interest in the bloom property located within the chasesilica field
ii texas 1 working interest in the vintage hills prospect unit located within the giddings field 3 working interest
in the nesbitt prospect unit located within the woodlawn field
iii colorado 1625 working interest in the verde prospect unit
iv oklahoma 30 working interest in the bale creek prospect unit 
the chief operating decision maker’s internal report is based on the location of the oil properties as disclosed below 35 annual report 2012
us mid ukraine head total
continent office
2011 2011 2011 2011
£000 £000 £000 £000
segment results – 2011
revenue
total 244 – – 244
inter company ––––
revenue 244 – – 244
operating loss before depreciation 
amortisation sharebased payment 
charges and restructuring costs 1012 – – 1012
depreciation of tangibles 34 – – 34
amortisation of intangibles 2 – – 2
operating loss 1048 – – 1048
realised exchange loss – – 11 11
finance income 63 – – 63
loss before taxation 985 – 11 996
segment assets
property plant and equipment 220 – – 220
intangible assets 1221 – – 1221
cash and cash equivalents 1457 – – 1457
other assets 985 – – 985
3883 – – 3883 36 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
3 employees and directors
2012 2011
£000 £000
directors’ fees 36 36
directors’ remuneration 195 184
social security costs 14 9
245 229
salary
£000
m b lofgran 102
2012 2011
number number
directors 44
44
2012 2011
£000 £000
on bank balance –2
on other receivables 89 61
finance expense 28 –
61 63
4 finance incomeexpense
the average monthly number of employees including directors during the year was as follows 
directors’ remuneration
other than the directors the group had no other employees total remuneration paid to directors during the year was
as listed above
the highest paid director’s emoluments and other benefits for the year ended 31 december 2012 is as listed below 37 annual report 2012
5 operating loss for the year
the operating loss for the year is stated after chargingcrediting 
2012 2011
£000 £000
auditors’ remuneration company £16500 – 2011 £18300 17 18
depreciation of property plant and equipment 62 34
amortisation of intangibles 41 2
loss on disposal of fixed assets – 1
foreign exchange differences 127 11
the analysis of administrative expenses in the consolidated income statement by nature of expense
2012 2011
£000 £000
directors remuneration 195 184
social security costs 14 9
directors’ fees 36 36
consultancy fees –14
travelling and entertaining 99 47
legal and professional fees 305 301
auditor’s remuneration 17 18
foreign exchange differences 127 11
other expenses 83 313
876 933 38 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
6 income tax expense
the tax charge on the loss for the year was as follows
2012 2011
£000 £000
current tax
corporation tax ––
overseas corporation taxrecovery – –
total ––
2012 2011
£000 £000
loss before tax 840 996
loss on ordinary activities before taxation multiplied by standard rate 
of uk corporation tax of 24 2011 26 202 259
effects of
nondeductible expenses 43 9
other tax adjustments 159 250
foreign tax ––
202 259
current tax charge ––
at 31 december 2011 the group had excess management expenses to carry forward of £1096090 2011 £849068
and trading losses of £1330990 2011 £917630  the deferred tax asset at 24 2011 26 on these tax losses of
£582499 2011 £459342 has not been recognised due to the uncertainty of recovery
7 loss of parent company
as permitted by section 408 of the companies act 2006 the income statement of the parent company is not presented
as part of these financial statements the parent company’s loss for the financial year was £362182 2011 £284475    39 annual report 2012
8 earnings per share
the calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of
ordinary shares in issue during the year for diluted earnings per share the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary shares the group had two classes of dilutive
potential ordinary shares being those share options granted to employees and suppliers where the exercise price is less
than the average market price of the group’s ordinary shares during the year and in 2009 convertible loans 
details of the adjusted earnings per share are set out below
2012 2011
eps – loss
loss attributable to ordinary shareholders £000 840 996
weighted average number of shares 2158226692 1777379579
weighted average number of shares on diluted basis 2162475588 2045555418
continued operations
basic and diluted eps – loss pence 0039 0056
9 goodwill
group £000
cost
at 1 january 2011 4211
additions –
at 31 december 2011 4211
additions –
at 31 december 2012 4211
provision
at 1 january 2011 943
charge for the year 3268
at 31 december 2011 4211
charge for the year –
at 31 december 2012 4211
carrying value
at 31 december 2012 –
at 31 december 2011 –
goodwill arose on the acquisition of nostra terra overseas limited in 2007 and was fully impaired in 2009
the diluted loss per share is the same as the basic loss per share as the loss for the year has an antidilutive effect 40 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
10 other intangibles
group
licenceexploration total
and
evaluation
assets
£000 £000 £000
cost
at 1 january 2011 626 585 1211
additions – 796 796
expensed in the year – 140 140
disposals 409 246 655
currency gain 6 6 12
at 31 december 2011 223 1001 1224
additions – 2313 2313
disposals – – –
currency loss 10 90 100
at 31 december 2012 213 3224 3437
provision
at 1 january 2011 – – –
charge for the year – 3 3
at 31 december 2011 – 3 3
charge for the year – 41 41
currency loss – – –
at 31 december 2012 – 44 44
carrying value
at 31 december 2012 213 3180 3393
at 31 december 2011 223 998 1221
the assets expensed in the year relate to the plugging and abandonment of 2 wells in the bloom field 41 annual report 2012
the group assesses at each reporting date whether there is an indication that the intangible assets may be impaired by
considering the net present value of discounted cash flows forecasts if an indication exists an impairment review is
carried out at the year end the directors are of the opinion that there has been no impairment in value 
on 13 april 2011 the company entered into an agreement with hewitt petroleum inc now richfield oil  gas
company and hewitt energy group inc together the “hpi entities”
the principal terms of the agreement which on closing led to termination of the operational relationship between the
company and the hpi entities were as follows
nostra terra acquired 100 working interest wi in and assumed operatorship of the producing bloom property 
nostra terra’s existing 75 wi before payout 50 wi after payout in the boxberger property where operations remain
suspended pending the resolution of title issues was assigned to the hpi entities
nostra terra assigned to the hpi entities its interests in all other hpioperated assets including hoffman the undeveloped
adjoining acreage within the trapp field and the koelsch property and the liberty 1 exploration well
nostra terra received a us13 million note to be secured by other assets of the hpi entities the “hpi note” the hpi
note was extended by a month matured on 31 january 2012 and accrues interest at 10 per annum  
nostra terra has the right but not the obligation to convert the principal amount outstanding under the hpi note into
shares of richfield at us250 per share and
richfield has issued nostra terra a warrant exercisable in whole or in part to subscribe for up to 600000 shares of
richfield common stock with an aggregate exercise price of us15 million at a strike price of us250 per share
expiring one year after admission to trading on the toronto stock exchange or the tsx venture exchange the warrant
will be transferable subject to the provisions of the us securities act 1933 as amended
however as no funds were received by the maturity date the company began the process of recovering against the
collateral which consists of producing leases in kansas and nonproducing leases in utah 42 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
11 property plant and equipment 
group
plant  plant  total
equipment equipment 
– oil and – other 
gas assets assets
£000 £000 £000
cost
at 1 january 2011 269 – 269
disposals 40 – 40
additions 36 – 36
at 31 december 2011 265 – 265
dispositions – – –
additions 356 – 356
currency loss 49 – 49
at 31 december 2012 572 – 572
provision
at 1 january 2011 11 – 11
dispositions – – –
charge for the year 34 – 34
at 31 december 2011 45 – 45
dispositions – – –
charge for the year 62 – 62
currency loss 3 – 3
at 31 december 2012 104 – 104
carrying value
at 31 december 2012 468 – 468
at 31 december 2011 220 – 220 43 annual report 2012
12 fixed asset investments 
company
investment loan to total 
in subsidiary subsidiaries
£000 £000 £000
cost
at 1 january 2011 4409 2595 7004
additions – 1916 1916
at 31 december 2011 4409 4511 8920
additions – 1962 1962
at 31 december 2012 4409 6473 10882
provision
at 1 january 2011 4409 560 4969
charge for the year – – –
at 31 december 2011 4409 560 4969
charge for the year – – –
at 31 december 2012 4409 560 4969
carrying value
at 31 december 2012 – 5913 5913
at 31 december 2011 – 3951 3951
shareholding country of nature of business
incorporation
nostra terra overseas limited 
“ntol” 100 cyprus oil and gas exploration in ukraine
dormant
new horizon energy 1 llc
“nhe” 100 usa oil and gas exploration in usa
goldhawk oil  gas llc
“goldhawk” 100 usa oil and gas exploration in usa
churchill operating llc
“churchill” 100 usa oil and gas operations in usa
in the opinion of the directors the aggregate value of the company’s investment in subsidiary undertakings is not less
than the amount included in the balance sheet see note 9 for details on impairment
the details of the subsidiaries are as set out below 44 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
13 trade and other receivables
group company
2012 2011 2012 2011
£000 £000 £000 £000
current 
other receivables 1079 943 – 21
other taxes receivables 10 31 7 28
1089 974 7 49
other receivables include £950834 due from richfield see note 10
the directors consider that the carrying amount of other receivables approximates their fair value
14 cash and cash equivalents
group company
2012 2011 2012 2011
£000 £000 £000 £000
bank current accounts 309 1457 12 193
15 trade and other payables
group company
2012 2011 2012 2011
£000 £000 £000 £000
current 
trade payables 249 20 – –
accruals and deferred income 59 37 44 24
director’s loan account 503 – 503 –
other taxes payable 4 – – –
815 57 547 24
trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing expenses
the directors consider that the carrying amount of trade and other payables approximates their fair value 45 annual report 2012
16 financial liabilities – borrowings 
maturity of the borrowings is as follows
group company
2012 2011 2012 2011
£000 £000 £000 £000
current
repayable within one year
other loans 246 – 246 –
loan notes 352 – – –
noncurrent
repayable between one and five years
loan notes – 368 – –
598 368 246 –
on 25 may 2007 the company issued pursuant to the share purchase agreement a promissory note in the sum of
us1838928 to be issued to the vendors of nostra terra overseas limited
the company will be obliged to repay the sums due under the terms of the promissory note relating to the ukraine
properties quarterly in arrears based on the group’s cash flow from all of its wells which have been producing for at
least 30 days for the most recently completed quarter no repayments shall be made until the net income from such
wells exceeds us225000 for the relevant quarter
however on 24 december 2009 the company agreed with its wholly owned subsidiary nostra terra overseas limited
“ntol“ and nikea nominees limited and nikea trustees limited together “nikea“ to an assignment and variation
of the promissory note dated 25 may 2007 in the sum of us1838928 whereby the amount due from the company
to nikea is reduced by 75 to us459732 the “nikea sum“ and the obligation to repay the nikea sum is assigned
to ntol in addition interest will no longer be payable on the nikea sum and the nikea sum will be due for repayment
on or before 30 november 2012 with no contingency based on the cash flow from the companys wells a provision
allowing the parties to assign the promissory note has also been inserted
on 25 june 2007 the company issued £32767938 of zero coupon creditors convertible loan stock 2009 to the
nostra terra overseas limited vendors the principal amount of the creditors convertible loan stock is convertible at
the rate of one ordinary share for each 2p of the principal amount of the stock in the period to 25 june 2009 the stock
was to be repaid on or before 31 december 2009 the company would have been able to give notice at any time to
convert any stock at 120 of its nominal value 
on 25 june 2007 the company issued £88483 of zero coupon creditors nonconvertible loan stock 2009 to be issued
to the vendor under the acquisition agreement the redeemable loan stock may be redeemed at any time by the
company and was repayable on or before 31 december 2009 
on 30 june 2009 the company reached agreement with all holders of outstanding loan notes issued in 2007 whereby
the outstanding £252951 together with an additional £4000 owing to one of the loan note holders is settled by the
payment of £35131 in cash and the issue of 110910200 new ordinary shares at an effective issue price of 02 pence
per ordinary share  46 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
loan notes issued by nostra terra overseas limited
on 25 may 2007 a promissory note was issued to nikea and masterworks overseas limited “masterworks” in the
sum of us436460 which bears interest at 49 per annum 
repayment of the sums due under the terms of this promissory note is to be quarterly in arrears based on cash flow
from the group’s wells which have been producing for at least 30 days for the most recently completed quarter no
repayments shall be made until the net income from such wells exceeds us225000 for the relevant quarter 
on 24 december 2009 ntol agreed with nikea and masterworks to a variation of the promissory note dated 25 may
2007 as partially assigned by deed of assignment dated 14 november 2007 in the total sum of us436460 whereby
the amount due from ntol to nikea is reduced from us194161 by 75 to us48540 and the amount due from
ntol to masterworks is reduced from us242299 by 75 to us60575 together the “nikeamasterworks sum” in
addition interest will no longer be payable on the nikeamasterworks sum and the nikeamasterworks sum will be due
for repayment on or  before 30 november 2012 with no contingency based on the cash flow from the companys wells
on 10 may 2006 a promissory note in the sum of us15974450 was issued to ucoco energy inc “ucoco” on 24
december 2009 ntol agreed with ucoco to a variation of the promissory note dated 10 may 2006 as amended by
deed of variation dated 25 may 2007 in the sum of us159745 whereby the amount due from ntol to ucoco is
reduced by 75 to us39936 the “ucoco sum” in addition interest will no longer be payable on the ucoco sum
and the ucoco sum will be due for repayment on or before 30 november 2012 with no contingency based on the cash
flow from the group’s wells
on 8 october 2010 pursuant to a deed of cancellation executed between ucoco and the companys whollyowned
subsidiary nostra terra overseas limited “ntol” a promissory note under which ntol had agreed to pay the sum
of us39936 to ucoco has lapsed and been terminated in its entirety
authorised
number class nominal 2012 2011
value £000 £000
2500 million 2011 – 2500 million ordinary 01p 2500 2500
allotted called up and fully paid
number class nominal 2012 2011
value £000 £000
24651653141950100585            ordinary 01p 2465 1950
17 called up share capital
16 financial liabilities – borrowings continued 47 annual report 2012
18 reserves
group translation retained share total
reserve losses premium
£000 £000 £000 £000
at 1 january 2011 12 5909 6842 945
shares issued in the year – – 1669 1669
share issue cost – – 110 110
loss for the year – 996 – 996
at 31 december 2011 12 6905 8401 1508
shares issued in the year – – 773 773
share issue cost – – 70 70
loss for the year – 840 – 840
foreign exchange translation 40 – – 40
at 31 december 2012 28 7745 9104 1331
company retained share total
losses premium
£000 £000 £000
at 1 january 2011 5898 6842    944
shares issued in the year – 1669 1669
share issue cost     – 110 110 
loss for the year 284 – 284
at 31 december 2011 6182 8401 2219
shares issued in the year – 773 773
share issue cost – 70 70
loss for the year 363 – 363
at 31 december 2012                                                              6545 9104 2559 48 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
19 risk and sensitivity analysis
the group’s activities expose it to a variety of financial risks interest rate risk liquidity risk foreign currency risk capital
risk and credit risk the group’s activities also expose it to nonfinancial risks market legal and environment risk the
group’s overall risk management programme focuses on unpredictability and seeks to minimise the potential adverse
effects on the group’s financial performance the board on a regular basis reviews key risks and where appropriate
actions are taken to mitigate the key risks identified
capital risk
the group’s objectives when managing capital are to safeguard the ability to continue as a going concern in order to
provide returns for shareholders and benefits to other stakeholders and to maintain an optimal capital structure to reduce
the cost of capital
market risk
the group also faces risks in conducting operations in us midcontinent which include but are not limited to
• fluctuations in the global economy could disrupt the group’s ability to operate its business in the us midcontinent
and could discourage foreign and local investment and spending which could adversely affect its production
environmental risks
the group faces environmental risks in conducting operations in the us midcontinent which include but are not 
limited to
• if the group is found not to be in compliance with applicable laws or regulations it could be exposed to additional
costs which might hinder the group’s ability to operate its business
credit risk 
the group’s principal financial assets are bank balances and cash trade and other receivables the group’s credit risk is
primarily attributable to its trade receivables the amounts presented in the balance sheet are net of allowances for
doubtful receivables an allowance for impairment is made where there is an identified loss which based on previous
experience is evidence of a reduction in the recoverability of the cash flows
foreign currency risk
the group does not have formal policies on interest rate risk or foreign currency risk 
the group reports its results in pounds sterling a significant share of the exploration and development costs and the
local operating costs are in united states dollars any change in the relative exchange rates between pounds sterling
and united states dollars could positively or negatively affect the group’s results 
the group is exposed to foreign currency risk on sales purchases and borrowings that are denominated in a currency
other than pounds sterling the group maintains a natural hedge that minimises the foreign exchange exposure by
matching foreign currency income with foreign currency costs
the group does not consider it necessary to enter into foreign exchange contracts in managing its foreign exchange risk
resulting from cash flows from transactions denominated in foreign currency given the nature of the business for the
time being 49 annual report 2012
group income statement balance sheet
2012 2011 2012 2011
££££
ukraine hryvnia uah 00768 00820 00768 00820
united states dollars us 06185 06470 06185 06470
volatility of crude oil prices
a material part of the group’s revenue will be derived from the sale of oil that it expects to produce a substantial or
extended decline in prices for crude oil and refined products could adversely affect the group’s revenues cash flows
profitability and ability to finance its planned capital expenditure the movement of crude oil prices is shown below
2012 2011
per barrel – us 10117 10426
per barrel – £ 6257 6746
liquidity risk
the group expects to fund its exploration and development programme as well as its administrative and operating
expenses throughout 2013 principally using existing working capital and expected proceeds from the sale of future
crude oil production the group had a bank balance of approximately £309000 at 31 december 2012
20 financial commitments
operating lease commitments
there are no significant operating lease obligations at the year end 
capital commitments
the group had no material capital commitments at the year end 
the foreign exchange rate affecting the group is as follows 50 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
21 related party transactions
group
stock to the value of £502750 owned by matt lofgran was advanced to the group during 2012 this is held in escrow
by yorkville on behalf of new horizons one llc and is sold where necessary to provide working capital funding to the
group the balance owing to matt lofgran a director of the company was £502750 2011 nil at the yearend
company
during the year the company advanced loans to its subsidiaries the details of the transactions and the amount owed
by the subsidiaries at the yearend were
2012 2011
balance loan balance loan
advance advance
repayment repayment
£000 £000 £000 £000
new horizon energy 1 llc 5606 1955 3651 1916
goldhawk oil  gas llc 861 – 861 706
churchill operating llc ––––
nostra terra overseas limited 7 – 7 –
totals 6474 1955 4519 2622
at the yearend the company made a provision of £nil 2011 £nil against the outstanding loan balance due from nhe
the net amount due to the company from nhe after provision carried forward of £560000 at the yearend was
£5045661 2011 £3090797 additionally during the year the company also charged management fees of £36937
2011 £13734 to nhe 
the intercompany loans are unsecured and interestfree 51 annual report 2012
22 sharebased payments
in 2012 new options of 38000000 and 170000000 were issued to the directors of the company on 25 january 2012
and 19 july 2012 respectively the share based payment charge for the year in respect of the issued option was £115160
in 2011 there was no share based payment charge as the amount was not material
the details of options and warrants are as follows
date of grant granted exercised forfeits at exercise exercisevesting date
vested 311212 price from to
warrants
25062007 4000000 – 4000000 – 200 25062001 30042012
30062009 217842506 217842506 – – 01 30062009 30062012
22062010 10000000 – – 10000000 052 22062010 21062015
22062010 30000000 – 30000000 – 075 22062010 21062015
17012011 3000000 – – 3000000 037 17012011 14012014
01072011 3333333 – – 3333333 06 01072011 01072014
options
25012012 38000000 – – 38000000 041 25012012 25012017
19072012 170000000 – – 170000000 047 19072012 19072017
the total options and warrants outstanding at 31 december 2012 and 31 december 2011 are as follows
total at 311212 224333333
total at 311211 268175839
the numbers of options outstanding to the directors at 31 december 2012 were as follows
director warrants options total
2012 2011 2012 2011 2012 2011
m b lofgran – 217842506 84000000 – 84000000 217842506
a b mccall 10000000 40000000 114000000 – 124000000 40000000
s v oakes 3000000 3000000 6000000 – 9000000 3000000
sir adrian blennerhassett – – 4000000 – 4000000 –
totals 13000000 260842506 208000000 – 221000000 260842506
other third party holdings 3333333 7333333 – – 3333333 7333333 52 nostra terra oil and gas company plc
notes to the ﬁnancial statements
for the year ended 31 december 2012
19 july 25 january 1 july 17 january 22 june 30 june
2012 2012 2011 2011 2010 2009
share price at grant date 047p 044p 068p 05p 047p 02p
exercise price 046p 041 06p 037p 052p 01p
option life in years 35 years 35 years 3 years 3 years 5 years 3 years
risk free rate 069 060 43 43 35 35
expected volatility 50 50 30 30 10 10
expected dividend yield 0 0 0 0 0 0
fair value of optionwarrant 012p 014p 012p 023p 0p 009p
22 sharebased payments continued
the estimated fair value of the warrants issued during the year was calculated by applying the blackscholes option
pricing model expected volatility was originally stated at 30 this has been revised to 50 because the volatility over
the past year has been used rather than the past 5 years the directors consider this is more appropriate due to a
significant share price drop in 2008 which is attributable to a oneoff event where work stopped during the opening of
a well in ukraine the assumptions used in the calculation were as follows
23 contingent liabilities and guarantees
the group has no contingent liabilities in respect of legal claims arising from the ordinary course of business and it is not
anticipated that any material liabilities will arise from contingent liabilities other than those provided for
24 ultimate controlling party
the company is quoted on the aim market of the london stock exchange at the date of the annual report there was
no one controlling party
25 events after the reporting period
in january 2013 the company surpassed break even on an operational basis the primary contribution was the additional
production from the first four wells in the chisholm trail prospect
on 13 march 2013 the company entered into an agreement acquiring 5 working interest in the high plains prospect
operated by brown  borelli the company subsequently increased its interest to 20 on 31 may 2013
on 2 april 2013 the company was awarded a judgment against richfield oil  gas in excess of us15 million
collection efforts have since begun
on 1 may 2013 a further £05 million was raised £502750 under its aggregated standby equity distribution agreement
with yorkville global advisors as amended on 23 october 2012 through the issue of 123546296 new ordinary shares
of 01p “ordinary shares” at an average price of 0407p per share the majority of the proceeds have been deployed
to acquire additional leases and expand the prospect along with developing further opportunities
on 1 may 2013 the company also announced that additional acreage was acquired in the chisholm trail prospect
giving exposure to 21 potential drilling locations 


Summary:
 4 nostra terra oil and gas company plc
chief executive’s review
nostra terra is an exploration and production company focused on finding and producing oil from conventional
reservoirs we accelerate production by applying modern technologies including 3d seismic mapping logging precision
horizontal and vertical drilling and multistage well completions 
we target regions of low political and geological risk specifically the united states midcontinent goldman sachs has
predicted that by 2017 the us will once again be the world’s largest oil producer generating 109m barrels a day this
is the result of highly sophisticated drilling technologies of the types we use which are opening new fields the states
in which we operate – oklahoma colorado kansas and texas – are all achieving their highest daily productions in several
decades because of the widespread application of these technologies
continuing our progress
a significant development in 2012 was our agreement with ward petroleum to acquire an interest in the chisholm trail
project which we announced in august this is our third multiwell drilling project in oklahoma we have a 20 interest
in the overall play with varying wis in the individual wells due to differences in the net acres leased in each well
this play is a good example of how horizontal drilling and completion techniques can revive areas that were thought to
be fully exploited ward has made rapid progress with the first two wells entering production towards the end of 2012
and two further wells now in production the fifth well in which we have a 22 wi has been completed and is
currently in production testing our initial expectation was that each well would produce 200 barrels of oil equivalent
per day “boepd” however all of the first four wells have done considerably better than this and we expect that the
fifth well will demonstrate similar results
an ongoing leasing program has also expanded the prospect holdings the acquisition of additional acreage means that
nostra terra is now exposed to 21 potential drilling locations including the five wells drilled so far
we are excited by the chisholm trail prospect’s potential a view supported by a recent larger acquisition in the play by
gastar exploration limited nysegst as well as other companies recently investing in the area our estimate is that
these wells each need to produce 75000 boe to reach payback and we are encouraged by gastar’s announcement that
it expects to recover several times this from its most recent wells we believe chisholm trail is a lowrisk highreturn
play a reserve report has now been commissioned and is anticipated shortly nostra terra will then be able to put in
place reservebased lending an attractive alternative to more dilutive forms of financing
initial 10day comparative 
production average 
boepd
nostra terra’s 
working interest
well
chisholm trail 1
chisholm trail 2
chisholm trail 3
chisholm trail 4
047 258
555
348
505
016
1258
531
chisholm trail 5 testing 22
chisholm trail 6 elected 50
subject to final elections being concluded and finalisation of working interest percentage 5 annual report 2012
we also made progress with our two other prospects in oklahoma bale creek and warrior nostra terra owns a 30
wi in the bale creek prospect which is operated by pathfinder development capital llc bale creek lies within a highly
productive and extensively mapped trend with multipay potential from as many as eight reservoirs following the
acquisition of 3d seismic data two wells were drilled at bale creek the first well which was horizontal produced oil
in swab testing but the pressure was unusually low while drilling the second well we and our partner saw the
opportunity to test two stacked formations that were prominent anomalies in the 3d seismic interpretation and decided
to continue drilling the well vertically in november we announced positive results from prolonged testing of the second
well which was producing oil and generating revenue work on the first well has been discontinued allowing us to
focus our resources on future wells
in january 2012 nostra terra agreed with crown energy company inc to acquire a 10 wi in the warrior prospect
like bale creek warrior lies within a prolific oil system in oklahoma and contains multiple stacked reservoirs a horizontal
well was drilled in the first half of the year and put into production 
nostra terra owns a 1625 wi in the verde prospect unit which covers 636 acres in colorado and is operated by
plainsmen partners llc at the start of 2012 one vertical well was in operation and producing approximately 50 barrels
of oil per day this well has exceeded our expectations and reached payout within the first nine months of continuous
production 
since the end of the financial year we have made another strategically important acquisition with the purchase of an
initial 5 wi in the high plains program in texas this strengthens our portfolio by giving us a higherrisk exploration
opportunity with the potential for large upside for our shareholders brown and borelli is our highly experienced and
respected operatorpartner
the area of mutual interest “ami” covers 66 contiguous square miles 42000 acres and is in a region where subsurface
mapping 3d seismic vertical and horizontal drilling and completion technologies have achieved varying degrees of
success we aim to increase that success rate by applying a new “proof of concept” with brown and borelli
the first step was to reenter a previously drilled well which we believed to have been misdrilled this reentry confirmed
that the original well had missed its target by a wide margin as a result the partnership are now reprocessing 35000
acres of proprietary seismic data integrating that with 42000 acres of detailed subsurface mapping and identifying
other potential drill targets we expect to identify multiple prospect areas within the ami each of which could comprise
up to 2500 acres and have multiple drilling locations the encouraging results so far have led us to increase our wi to
20
2012 net production
our portfolio of interests has continued to expand and oil and gas production increased during 2012 as shown in the
table below as we move through 2013 it is pleasing that both of these trends have continued enabling us to surpass
break even at the operational level in january a significant milestone in our development
working
interest
ntog
operated
prospect state net production boe
bloom kansas 3192
8
106
2088
4076 100 yes
vintage hills texas 1 no
nesbitt texas 3 no
verde colorado 16 no
59
69
586
331 warrior oklahoma 10 no –
331 bale creek oklahoma 30 no –
212 chisholm trail oklahoma varies no –
– high plains texas 20 no –
2012 2011 6 nostra terra oil and gas company plc
improving financial performance
growth in production led to higher revenues which increased from £244000 in 2011 to £352000 in 2012 a rise of
44 we achieved a gross profit of £90000 compared with a loss of £126000 in the previous year as the company
grows we keep tight control of administrative expenses which decreased by 6 to £876000 this contributed to a
reduced loss before tax of £840000 against a loss of £996000 in 2011
we have continued to put in place the financial resources we need to support our growth in may 2012 we entered
into a 360day loan facility of up to us3 million with ya global master spv ltd “ya global” an investment fund
managed by yorkville advisors llc the initial advance on the loan facility was us1 million and we may request further
advances of up to us2 million the facility attracts interest at 10 per annum
in september we successfully raised finance through two placings allowing us to further fund the drilling campaign in
oklahoma in total we raised £1070000 before expenses by placing 297222223 new shares at 036 pence per share 
since the year end we have raised £502750 under the seda by issuing 123546296 new shares at an average price
of 0407p per share we have used the majority of the proceeds to acquire additional leases and expand the chisholm
trail prospect along with developing further opportunities
also since the year end nostra terra has reached a milestone in its legal proceedings against richfield oil  gas company
formerly hewitt energy group inc on 14 april 2011 richfield issued a us13 million secured loan note to nostra
terra which accrued interest at 10 per annum and matured on 31 january 2012 at a hearing on 1 march 2013
nostra terra’s motion for partial summary judgment went unopposed we have received a judgement against richfield
in excess of us15 million in principal and interest plus an additional amount to be determined to cover the costs of
collection collection has now begun and we will aggressively pursue all remedies available under the judgement which
include garnishment of cash and the forced sale of corporate assets until the entire amount has been collected
an encouraging outlook
nostra terra has made a strong start to 2013 both operationally and financially in january we surpassed breakeven on
an operational basis – a major milestone in our development this was the result of greater than expected production
from the chisholm trail wells combined with production from the rest of our portfolio we expect most of the revenue
from chisholm trail to come through from 2013 onwards
with production now comfortably covering our operating overheads we can apply our operating margins and all new
funds raised to the leasing and drilling of new wells several wells are planned for 2013 within chisholm trail as well as
in other prospects we will continue to minimise overheads and remain focused on growing our production throughout
the year
matt lofgran
chief executive officer
4 june 2013
chief executive’s review continued