$2.1m Sale of Chisholm Trail Interest
29 June 2016
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Sale of Chisholm Trail Prospect for US$2.1 million
Nostra Terra (AIM:NTOG) is pleased to announce that today it accepted an offer for its 20 per cent. interest in the prospect operated by Ward Petroleum Corporation ("Ward Petroleum") in the Chisholm Trail Prospect, Oklahoma, for approximately US$2.1 million net ("the sale").
Pinnacle Energy of Oklahoma City was retained by Ward Petroleum to undertake a negotiated sale of select oil and gas properties and leasehold in the Chisholm Trail Prospect where Nostra Terra owns a 20 per cent. interest. During the competitive bidding process Nostra Terra opted to participate in the sale.
The buyer is a privately held, Oklahoma-based oil and gas company focused on the pursuit of sizeable, high-growth and emerging plays through a combination of producing and non-producing property acquisitions, grassroots leasing and farm-ins or joint ventures. The sale is anticipated to close no later than 17 August, 2016.
Nostra Terra intends to deploy the net funds generated from the sale to secure working interests in new projects and to provide working capital for the Company. As previously announced the board of the Company ("Board") has been building a pipeline of potential new opportunities to introduce to the company, making the timing of the sale most opportune in the Board's opinion.
Whilst the proceeds from the sale of the Chisholm Trail asset are substantial compared to the market capitalisation of the Company, Nostra Terra still has other producing assets, in the Chisholm Trail play with other operators, production in Colorado and Texas, large exploration prospects in Wyoming, as well as sizeable production in Egypt.
The net book value of the assets, which are being sold, as at 31 Dec 2015 was approximately US$1.70 million and the revenue derived from the assets for the year to 31 December 2015 was US$0.67 million. The Board has not allocated Company costs to determine profits.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"We are very pleased to release meaningful value from Nostra's asset base at this time in the company's development. As a sizeable partner in the asset we were given the option to participate in the sale and have decided it's a great opportunity to re-deploy funds to assets where Nostra Terra will have a larger interest and more control of the pace of growth. It comes at a time in the sector when oil prices are low creating a great opportunity to acquire assets that can have an impact for both the near and long-term."
For further information, visit www.ntog.co.uk or contact:
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Nostra Terra Oil and Gas Company plc Matt Lofgran, CEO
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+1 480 993 8933 |
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Strand Hanson Limited (Nominated & Financial Adviser and Joint Broker) |
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+44 (0) 20 7409 3494 |
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Rory Murphy / Ritchie Balmer |
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Cornhill Capital Ltd (Joint Broker) |
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+44 (0) 20 7710 9610 |
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Nick Bealer / Colin Rowbury
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Walbrook PR (Financial PR) |
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+44 (0) 20 7933 8797 |
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Gary Middleton / Nick Rome |
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This information is provided by RNS
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