Business
Update re East Ghazalat Concession
Update re East Ghazalat Concession.
About this update from Buccaneer Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9053M Nostra Terra Oil & Gas Company PLC 25 January 2016 \n\n25 January 2015\n \nNostra Terra Oil and Gas Company plc\n(\"Nostra Terra\" or the \"Company\")\n \nUpdate re East Ghazalat concession\n \nNostra Terra and Independent Resources plc (\"IRG\") (AIM:IRG) make the following announcement in relation to the East Ghazalat concession in Egypt (\"East Ghazalat\").\n \nIn this announcement:\n\"JV\" means the joint venture between IRG and NTOG.\n\"North\" or \"NPIC\" means North Petroleum International Company, a subsidiary of China ZhenHua Oil Co. North is the owner of the other 50% interest and operator in East Ghazalat (China Zhenhua Oil Co. is the wholly owned oil and gas arm of China North Industries Corporation (\"NORINCO\"), a Chinese state-owned company).\n\"JOA\" means the joint operating agreement between North and the JV which governs East Ghazalat.\n \nNorth has served a notice of default pursuant to the terms of the JOA in respect of unpaid cash calls for November and December 2015, which the JV estimates to be approximately $750,000. These cash calls had previously been rejected by the JV on the grounds that they were manifestly excessive, contained no justification for the level of funds demanded and failed to reflect the issues already raised by the JV under the JOA in relation to the 2015 budget. \nThe JV had previously served notice on North pursuant to the relevant provisions of the JOA that it intends to undertake detailed audits of the accounting and procurement processes, actual accounts, records and inventory for East Ghazalat for the 2013 and 2014 financial years.\nThese audits are in pursuance of the JV's policy, as previously stated on 15 October 2015, of seeking to improve operating margins through cost reduction initiatives and to implement further reserve enhancement opportunities in a disciplined and rigorous manner.\nThe JV believes that the service of the notice is in part in response to the submission of the audit request by the JV and the challenges it has been posing and continues to pose to North in its capacity as operator.\nOn completion of the acquisition, the right to recover under the unresolved audit for the 2012 year undertaken by TransGlobe was transferred to the JV. In the JV's view, proper process has not been followed by North or ...