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(Sharecast News) - Texas-focussed oil and gas exploration and production company Nostra Terra reported progress with the planned strategic expansion of its portfolio into Tunisia on Wednesday.
The AIM-traded firm said exclusive negotiations and preparations had taken place for a large block with existing discoveries, offering both exploration and appraisal activity.
It said it had organised new entities in anticipation of such an expansion.
Completion of the initial transaction was not certain, the board warned, but it did note that it had exclusivity, had negotiated terms, and was awaiting final approval.
It said further updates would be made in due course.
"Our core focus at Nostra Terra has been to first build a foundation of steady producing assets where cashflow covers overhead and can be reinvested in growth," said chief executive officer Matt Lofgran.
"We know investors like to see assets that have large potential upsides so that they can deliver substantial value.
"We said that we planned to add that aspect to the portfolio once we reached cash flow positive."
Lofgran said that, in anticipation of its current position, the board started working on certain opportunities in the spring of 2020, when commodity prices were low, creating a "great opportunity" to invest.
"We are leveraging the board's extensive experience and network, and we look forward to adding a dynamic asset to the portfolio, with no near term external funding needs, and the ability to have a very positive impact."
At 1406 BST, shares in Nostra Terra Oil and Gas Company were down 6.33% at 0.52p.
24 Jun 2016 15:10