LONDON (Alliance News) - Independent Resources PLC and Nostra Terra Oil & Gas Co PLC both saw their shares rise in early trade on Tuesday after the pair's joint venture agreed to acquire a producing asset in Egypt.
The 50:50 joint venture between the two has reached an agreement with TransGlobe Energy Corp to acquire a 50% stake in the East Ghazalat concession in Egypt for USD3.5 million.
The project currently produces around 880 barrels of oil per day, based on production levels from June 2015, or 440 bopd net to the joint venture. The 2P reserves attributable to the asset at June 30 were estimated at 1.0 million barrels of oil.
The consideration will be covered by USD1.0 million in cash and the issue of a USD2.5 million loan note by TransGlobe.
"This marks the first of what I hope to be several asset acquisitions where we can demonstrate the value we can bring to oil and gas assets by good cost management, a rigorous approach to decision making and the application of appropriate technology to optimise oil and natural gas production and reserves for the benefit of the Arab Republic of Egypt and our shareholders," said Independent Resources Chief Executive Greg Coleman.
"With this first acquisition outside of the USA for Nostra Terra, our net production will treble as well as seeing a significant increase in revenue. This is the beginning of adding much larger scale in our operations," added Nostra Chief Executive Matt Lofgran.
Independent Resources shares were up 20% on the news to 0.900 pence, while Nostra shares were up 24% to 0.12 pence, making the pair the two best performers in the AIM All-Share in early trade.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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