A joint venture between Independent Resources and Nostra Terra Oil & Gas is acquiring a producing asset in Egypt
The joint venture has reached an agreement with TransGlobe Energy for the acquisition of a 50 per cent non-company operated interest in the East Ghazalat concession in Egypt in a deal valued at US$3.5mn. The concession also includes two other gas discoveries that had already been announced by TransGlove earlier.
The East Ghazalat concession currently produces about 880 bpd, based on average flows in June, and has more than one million barrels of proved and probable reserves. The other two gas discoveries, North Dabaa 1X and North Dabaa 2X, have been tested for an average rate of 16 mmcfd of gas and 1,620 bpd of condensate, and 18.7 mmcfd of gas and 542 bpd of condensate, respectively.
Greg Coleman, CEO of Independent Resources, commented on the deal, saying, “This marks the first of what I hope to be several asset acquisitions where we can demonstrate the value we can bring to oil and gas assets by good cost management, a rigorous approach to decision making and the application of appropriate technology to optimise oil and natural gas production and reserves for the benefit of the Arab Republic of Egypt and our shareholders.”
The deal is Nostra Terra’s first acquisition outside of the US. The company’s CEO, Matt Lofgran said that as a consequence, the company’s net production will treble and it will also see a significant increase in revenue. “We're excited to be expanding into Egypt in an area of prolific production. This is the beginning of adding much larger scale in our operations,” he said.
The acquisition agreement was signed between the two sides a week ago and the deal is expected to be completed later this month.
The 50-50 joint venture between Independent Resources and Nostra Terra was formed last month with the stated intent of acquiring producing assets in the North Africa region.
