Thursday, November 21, 2019
Nostra Terra announced that, further to the company’s announcement of August 12, 2019. Nostra Terra’s wholly owned subsidiary, Nostra Terra Inc. (NTI) has reached a conditional agreement with regards to the East Ghazalat Concession, Egypt (the Concession).
Matt Lofgran, Chief Executive Officer of Nostra Terra, said: “I am very pleased that NTI has reached this agreement with North, which sees Nostra Terra effect a clean exit from this non-core concession. Following the arbitration NTI had the option to pay past cash calls and continue with the asset. However, we have taken the view that because the asset is loss-making and given we are not the operator, despite the fact that we feel that we could improve operations significantly, ultimately the best resolution is for NTI to transfer its interest and have no past or future liability.”
NTI and North Petroleum International Company SA (North), the operator of the Concession, have conditionally agreed that NTI will transfer its 50% participating interest in the Concession to North with provision for the conclusion of the arbitration and no further cash calls or liabilities for any past losses, including the amounts for the payment of November and December 2015 cash calls and interest, as announced on August 12.
Completion of the assignment is conditional on the necessary formal governmental approvals. If such conditions are not satisfied by December 31, 2019, then North has the right to terminate the agreement provided that the requisite termination notice is served on or before April 30, 2020.
The agreement contains standard representations and warranties for an agreement of this nature.