East Ghazalat Update

RNS Number : 8144X

Nostra Terra Oil & Gas Company PLC

10 May 2016

 

10 May 2016                                                                                                                                                      AIM:NTOG

Nostra Terra Oil and Gas Company PLC

(the "Company")

East Ghazalat Update

We note the announcement released today by Independent Resources plc, entitled "Creditor and Cost Reductions & Financial Update", which includes a section on the East Ghazalat joint venture, which is 50 per cent. owned by the Company, and which is set out below:

"Update on East Ghazalat

Independent Resources Egypt Ltd ("IRE") is the Company's joint venture vehicle with Nostra Terra Oil and Gas Company plc ("NTOG"), which owns a 50% interest in the East Ghazalat concession.

IRE continues to make progress on the registration process with the Egyptian Government. This will allow it to receive its share of the East Ghazalat revenues from 1 July 2015.  

As announced on 25 January 2016, IRE remains in dispute with North Petroleum International SA the operator of East Ghazalat. IRE remains entitled to its share of revenues notwithstanding the dispute and expects the formalities with the Egyptian authorities to allow it to receive those revenues to be completed within approximately two months.  IRE will receive directly from Egyptian General Petroleum Corporation its shares of revenue from East Ghazalat.  IRG will make a further announcement on completion of those formalities.

As part of the terms of the acquisition of East Ghazalat as announced on 15 October 2015, IRE issued a US$2.5m loan note to TransGlobe Petroleum International Inc. ("TransGlobe") the vendor of East Ghazalat, repayable by 30 September 2017 (the "Loan Note").  IRG is jointly and severally liable with NTOG for the Loan Note.

The amount to be repaid to TransGlobe pursuant to the terms of the Loan Note is subject to adjustment to reflect East Ghazalat's working capital position on 30 June 2015, together with the net cash flow attributable to the assets from 30 June 2015 until the 14 October 2015, the date of completion of the acquisition ('the adjustment").  The scale of the adjustment has not yet been agreed."

Further updates will be provided as and when appropriate.

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

Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO		[phone]
Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker)			[phone]
Rory Murphy / Ritchie Balmer
Cornhill Capital Ltd (Joint Broker)			[phone]
Nick Bealer / Colin Rowbury
Walbrook PR (Financial PR)			[phone]
Gary Middleton / Nick Rome

 

END

 

 

MSCEAASEFDSKEFF