LONDON (Alliance News) - Nostra Terra Oil & Gas PLC and Independent Resources PLC on Thursday said their joint venture has completed the acquisition of a 50% interest in the East Ghazalat concession in Egypt from TransGlobe Petroleum International Inc.
TransGlobe Petroleum is a wholly-owned subsidiary of Calgary, Canada-based TransGlobe Energy Corp, and the acquisition was completed for USD3.5 million. The pair didn't say who owns the other 50% of the project.
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 was covered by USD1.0 million in cash and an existing third-party loan facility arranged by Nostra Terra, and the issue of a USD2.5 million loan note by TransGlobe.
"I'm very pleased to announce the closing of our first acquisition outside of the USA, with Independent Resources, and the start of a diversified approach to increased levels of production and cash generation. The asset provides an opportunity to measurably impact on cash flows. We look forward to an exciting future with Independent Resources as there are many opportunities which we believe we can now consider," Nostra Terra Chief Executive Matt Lofgran said in a statement.
Independent Resources Chief Executive Greg Coleman added: "It is very clear that this partnership has an exciting future together as there are many opportunities which we believe we can now consider. In the short term, we are now focused on working with [Egyptian General Petroleum Corp] and the operator to add significant value to the asset."
Shares in Nostra Terra were untraded Thursday morning, last quoted at 0.107 pence, while Independent Resources shares were trading up 4.3% at 0.730p.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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