Business
Transfer of Ukrainian Assets
Transfer of Ukrainian Assets.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n NOSTRA TERRA OIL & GAS COMPANY PLC\n (\"Nostra Terra\" or the \"Company\")\n\n Transfer of Ukrainian Assets\n\n18 February 2010\n\nNostra Terra Oil & Gas plc (AIM: NTOG) is pleased to announce that its wholly-\nowned subsidiary, Nostra Terra Overseas Ltd (\"NTOL\"), has entered into a\ncontract with Crimea Nadra Invest (CNI) relating to its assets in Ukraine.\n\nUnder the terms of the contract, CNI will acquire all the rights and obligations\nassociated with the Joint Activity Agreement of 27 January 2001 (the \"JAA\")\ncovering NTOL's operations in Ukraine and in particular the Oktyabrskoe field\nlicence, while NTOL will retain a right to payment of 25 per cent of any net\nprofits generated by CNI from the JAA, which runs for a period of 25 years from\n27 January 2001. The consideration for the transaction is to be settled by the\ndeferred payment from future oil sale proceeds of 360,000 Ukraine hryvnia\n(approximately £29,000), which will be applied towards general working capital.\n\nDuring the last nine months, Nostra Terra has successfully embarked on a new\nstrategic direction focused initially on the mature, low-cost oil producing\nregion of the US mid-continent, where it has already established early oil\nproduction and continues to build its asset portfolio.\n\nMatt Lofgran, CEO of Nostra Terra, said: \"I believe this is a very positive deal\nfor Nostra Terra and our shareholders, as it provides us with the right to 25%\nof any future net profits from the currently non-productive JAA, with no further\ncost exposure.\n\n\"Our primary objective at this stage is to build a solid foundation within the\nUS mid-continent, on which to grow our oil and gas business sustainably and\nselectively on an international scale. With its local expertise and\nrelationships, CNI is well positioned to unlock additional value from the\nOktyabrskoe licence, while we can now devote our management and financial\nresources to achieving that primary objective of profitable growth.\"\n\nCNI is based in Evpatoria, Crimea, and has other oil and gas interests in the\nregion.\n\nNostra Terra will retain its small representative office in Ukraine for the time\nbeing in order to assist and monitor the joint venture.\n\nThe Company's 25 per cent interest in the Oktyabrskoe field licence was carried\nat £153,000 in its last audited consolidate...