Nostra Terra has entered into an agreement with Plainsmen Partners LLC to acquire a 16.25% working interest in the Verde prospect, located in south-eastern Colorado.

The leases cover approximately 636 net acres in which an initial test well will be drilled into the Mississippian formation to a projected total depth of 5300 feet. The total estimated cost of the well is US$ 1,131,691, of which Nostra Terra's estimated portion is US$ 183,900. The net revenue interest of Nostra Terra's 16.25% working interest is 13.41%. Drilling of the well is expected to begin during Q3, 2011.

Highlights of the Verde Field Development project include:

Shallow oil, with the potential of associated natural gas; Regional structural mapping suggests subsurface closure; Confirmation of subsurface high-structural block by 3D Seismic; Multi-pay potential of Marmaton, Morrow/Keyes & Mississippian reservoirs; Analogous to geological settings of several substantial oilfields. 3D seismic has been shot and interpreted that supports the subsurface mapping of a structural high being 25 to 50-feet up dip to historical production from the Lower Morrow Keyes. Should the drilling of the initial test well on the Verde prospect prove successful, two to three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate.

Lower Morrow/Keyes target

The Lower Morrow/Keyes Sand has produced, to date, from 4 wells down dip within the immediate area, which have an accumulated historic production of approximately 60,000 barrels of oil. The last two of these wells were plugged in 1991, due to the prevailing economics of the day, when producing approximately 3 to 5 barrels of oil per day. The proposed drill location is positioned to recover "attic" oil in the Keyes at a higher location on the structural feature.

Mississippian target

The Mississippian section has not been adequately tested on top of the structural feature, and is considered an exploration target.

One well on the south flank of the Verde structure had drill stem test ('DST') recovery of 190-feet of slightly oil cut mud; another well on the southeast flank had DST recovery of 70-feet of drilling mud with dead oil.

Marmaton target

The Marmaton, at 3700 feet, had an oil show on DST down dip. Interpretation of the 3D seismic shows 25 feet of Marmaton closure at the proposed location, and an amplitude anomaly indicating attractive reservoir thickness.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented,"Nostra Terra is delighted to have entered into this agreement with Plainsman Partners, which further diversifies the Company's operational relationships. The acquisition of a 16.25% working interest follows Nostra Terra's plans of continually upgrading our portfolio. We are also excited to be drilling in a location that is up dip from previous production. This could provide the participants in the Verde prospect with the opportunity to set up offset development wells."

The technical information within this announcement has been reviewed by Alden McCall, the Company's Chief Operating Officer, a Certified Petroleum Geologist and a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.

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