Joint Venture Agreement in North Africa

RNS Number : 5935Z

Nostra Terra Oil & Gas Company PLC

21 September 2015

 

21 September 2015

Nostra Terra Oil and Gas PLC

("Nostra Terra" or the "Company")

Joint Venture Agreement with Independent Resources plc

Nostra Terra (AIM:NTOG) is pleased to announce the signing of a strategic joint venture agreement with Independent Resources, an AIM listed exploration and production company focused on the acquisition of producing assets in the Mediterranean and North Africa region and a similar strategic intention to that of Nostra to invest in producing or near-production assets.

Under the terms of the Agreement, the parties will co-operate in areas of project identification and due diligence, financing, geological exploitation, technical support, operations and procurement with a geographical focus on North Africa with immediate attention focused on Egypt and Tunisia. We are specifically targeting existing producing assets with an immediate focus on cash flow, where we can leverage the equity investments and grow our portfolio.

Together the companies will work on sourcing opportunities where there is scope to:

·      increase production through better field, reservoir and well management;

·      reduce operational costs; and

·      deliver good economic returns even at current oil pricing.

As partners, the joint strategy for delivering value will involve investing in assets where the application of modern industry practices including:

·      precision drilling technology, including horizontal drilling and multi stage well stimulation;

·      precise 3D seismic mapping;

·      detailed log and technical evaluation; and

·      multi-zone well completions

will offer scope to significantly increase recovery from fields that the management of Nostra Terra and Independent Resources would regard as having historically failed to produce to optimal levels.

While the ability to operate licences will be sought, non-operated investments with a significant working interest and hence scope to influence field operations will also be considered.

Nostra Terra and IRG will establish a new legal entity that will be owned jointly by them and which will be used to execute new investments in due course.  We are actively progressing negotiations on our first co-investment opportunity and discussions and due diligence are ongoing on additional opportunities.

Matt Lofgran, CEO of Nostra Terra, commented:

"The lower oil price environment we are experiencing is presenting very interesting opportunities for investment and growth not just in America but globally. Partnering with Independent Resources gives us boots-on-the-ground experience of the countries we are immediately focusing on, with immediate acquisition opportunities of producing assets already being proposed and due diligence in progress.  We're happy to be involved with a strong team as we look to build a presence in the area."

Greg Coleman, CEO of Independent Resources, commented:

"We are really pleased to be working together with the team at Nostra Terra to advance co-investment opportunities.  Their strategic and operational agendas are very similar to our own and we believe that there is much experience in our respective companies that will complement each other. Co-operation with Nostra Terra will allow us to accelerate our acquisition programme."

About Nostra Terra

Nostra Terra Oil and Gas Company plc (AIM: NTOG) is a fast-growing exploration and production company focused on emerging plays within established hydrocarbon regions of the United States.   Nostra Terra's portfolio includes assets in Texas, Colorado, Oklahoma and Wyoming.

About Independent Resources

Independent Resources (AIM: IRG) is an exploration and production company focused on the acquisition of producing assets in the Mediterranean and North Africa region.  The company owns 86.345 per cent. of the Ksar Hadada onshore exploration licence in Tunisia.

For more information, please visit www.ntog.co.uk or contact:

Matt Lofgran		Nostra Terra Oil and Gas Company plc	[e-mail] [phone]
Lindsay Mair		Sanlam Securities UK Limited	[phone]
James Thomas		(Nominated Adviser & Broker)
Jamie Vickers (Broking)
Gary Middleton		Walbrook PR Ltd	[phone]
Nick Rome		(Media Relations)

For more information, please visit www.ir-plc.com or contact:

Greg Coleman		Independent Resources plc	020 3367 1134
Mark Taylor		Charles Stanley Securities	020 7149 6000
		(Nominated Adviser & Joint Broker)
Oliver Stansfield		Brandon Hill Capital	020 3463 5000
Jonathan Evans		(Joint Broker)
Simon Hudson		Tavistock Communications	020 7920 3150

 

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