Oil and gas company Terra Nova Energy Ltd. issued US $1.905 million of convertible notes in offering with an interest rate of 10% that will mature one year from the date of issuance in an effort to raise more capital funds.

The notes can be converted into common shares at a price of US $0.11 per share at Terra Nova. The company also reserved the right to settle unpaid and accrued interest through issuance of common shares.

The money raised will mainly be used to fund the company's seismic project on its onshore petroleum exploration license 444 in South Australia. Whatever is left will be realigned into the company's general working capital, according to a Yahoo news report.

Terra Nova issued a total of 818,181 finder's warrants, which can be put into play at a price of US $0.11 per share for a period of 12 months from the issuance date.

Meanwhile, the company also announced the retirement of James Hutton from its board of directors.