Nostra Terra Oil and Gas Company PLC (AIM:NTOG) shares tumbled to a new low after the company raised £300,000 at a discount to seal a deal to help develop drilling opportunities around its Pine Mills asset in East Texas, USA.
Shares were issued at a price of 0.12p apiece, which was a 25% discount to the closing price yesterday of 0.16p. The price fell to 0.12p in early trading on Thursday, marking a 57% decline over the past 12 months.
The company said it has been using seismic survey data to look for similar characteristics to the Fouke wells at Pine Mills.
It said it is "nearing completion of an agreement that will allow it to develop additional, analogous opportunities over a large area both within and contiguous to the existing Pine Mills acreage using modern 3D seismic data".
In addition to the £0.3 million placing and subscription, existing noteholder Discovery Energy Ltd requested conversion of £30,000 of their outstanding note into equity, while 9,000,000 broker warrants were also granted to Novum Securities and another 8,000,000 warrants issued to consultants, exercisable at the Placing Price with a three-year expiry.
The subscription element of the fundraise was with Dos Hermanos International who will now hold roughly 9.8% of the company's enlarged issued share capital.