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Agreement to acquire further 25% of East Ghazalat
Agreement to acquire further 25% of East Ghazalat.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 1578I Nostra Terra Oil & Gas Company PLC 15 June 2017 \n\n15 June 2017\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nAgreement to acquire a further 25% of East Ghazalat\n \nNostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces that on 14 June 2017 it reached agreement with Echo Energy plc (\"Echo\") to acquire Echo's 50% stake in Independent Resources Egypt Limited (\"IRE\") (\"the Acquisition\"). IRE owns a 50% non-operating interest in the East Ghazalat concession, Egypt (\"the Concession\") through its subsidiary Sahara Resources GOS Inc (\"SRGOS\"). The remaining 50% of the Concession is owned by North Petroleum International Company (\"North\"), which is the Operator.\n \nHighlights\n \n· Nostra Terra to purchase a further 25% of the East Ghazalat concession, Egypt, through the acquisition of Echo's 50% stake in IRE\no Nostra Terra now owns 100% of SRGOS, thereby giving Nostra Terra a 50% interest in the Concession \n· Initial consideration of US$100,000 to be paid to Echo, subject to approval by the Egyptian General Petroleum Corporation (\"EGPC\") with additional production related payments totaling up to US$400,000\n· Total acquisition of 50% stake in East Ghazalat adds just over 1 million barrels of 2P Reserves to Nostra Terra's asset portfolio for US$1.09 per barrel (total US$1.1million paid), based on a DeGoyler and MacNaughton Canada Limited estimate (see the Company's RNS of 15 Oct 2015).\n \nAcquisition Terms\n \nNostra Terra has agreed to pay to Echo a total consideration of up to US$500,000 once certain conditions are met. The conditions include:\n \n· The first US$100,000, upon;\no Approval of the Acquisition and assignment of the East Ghazalat Concession to Nostra Terra by EGPC, including:\no Completion of formal registration of SRGOS with EGPC, including,\no Agreement on outstanding issues with North.\n· A further US$200,000 payment, once production at East Ghazalat returns to 800 bopd for 30 consecutive days\n· A further US$200,000 once production at East Ghazalat reaches 1,000 bopd for 30 consecutive days\n· ...