Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, is pleased to announce that, further to the Company's announcement of 12 August 2019, Nostra Terra's wholly owned subsidiary, Nostra Terra Inc. ("NTI") has reached a conditional agreement with regards to the East Ghazalat Concession, Egypt (the "Concession").
NTI and North Petroleum International Company SA ("North"), the operator of the Concession, have conditionally agreed that NTI will transfer its 50% participating interest in the Concession to North with provision for the conclusion of the arbitration and no further cash calls or liabilities for any past losses, including the amounts for the payment of November and December 2015 cash calls and interest, as announced on 12 August 2019.
Completion of the assignment is conditional on the necessary formal governmental approvals. If such conditions are not satisfied by 31 December 2019, then North has the right to terminate the agreement provided that the requisite termination notice is served on or before 30 April 2020.
The agreement contains standard representations and warranties for an agreement of this nature.
Matt Lofgran, Chief Executive Officer of Nostra Terra, said:
"I am very pleased that NTI has reached this agreement with North, which sees Nostra Terra effect a clean exit from this non-core concession. Following the arbitration NTI had the option to pay past cash calls and continue with the asset. However, we have taken the view that because the asset is loss-making and given we are not the operator, despite the fact that we feel that we could improve operations significantly, ultimately the best resolution is for NTI to transfer its interest and have no past or future liability.
Nostra Terra is focused on the Permian Basin, and East Texas, USA, where it operates and expects to grow through a combination of acquisitions and drilling of further wells."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
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