Independent Resources plc and Nostra Terra Oil & Gas Company plc (NTOG:LSE) have reached an agreement with TransGlobe Energy Corporation to acquire, by Joint Venture Company, a 50 percent non-company operated interest in Egypt-based East Ghazalat concession in Egypt.
The joint venture company will pay a headline consideration of $3.5 million for the deal, which is expected to be completed in October.
“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,” Nostra Terra chief executive Matt Lofgran.
“This is the beginning of adding much larger scale in our operations.”
Current gross production from East Ghazalat is approximately 880 barrels of oil per day, based on average production levels from June. The concession also includes the North Dabaa 1X (ND1X) and North Dabaa 2X (ND2X) gas discoveries. ND1X has been tested at an average rate of 16 million cubic feet per day, and 1,620 barrels per day of condensate, and ND2X has been tested at 18.7 mcf per day and 542 barrels per day of condensate.
From his part, Greg Coleman, CEO of Independent Resources, commented in a company statement:
“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 optimize oil and natural gas production and reserves for the benefit of the Arab Republic of Egypt and our shareholders.”
In a statement released Tuesday, the companies said the project currently produces approximately 880 barrels of oil per day.
Shares in Nostra Terra Oil & Gas jumped on Tuesday, after the group’s joint venture with Independent Resources agreed to acquire an asset in Egypt.
Source: Rigzone & ShareCast News
