Nostra Terra and Independent Resources jump on Egypt deal

Shares in Nostra Terra Oil & Gas jumped on Tuesday, after the group’s joint venture with Independent Resources agreed to acquire an asset in Egypt.

The London-listed companies said their 50:50 joint venture, TransGlobe Energy Corp, will acquire a 50% stake in Egypt-based East Ghazalat concession for approximately $3.5m, with $1m to be paid in cash and the remainder to be covered by the issue of a $2.5m note by TransGlobe.

"With this first acquisition outside of the USA for Nostra Terra, our net production will treble as well as seeing a significant increase in revenue,” Nostra Terra chief executive Matt Lofgran.

“This is the beginning of adding much larger scale in our operations."

In a statement released on Tuesday, the companies said the project currently produces approximately 880 barrels of oil per day.

As of 1506 BST on Tuesday, Nostra Terra shares were up 25.26% to 0.119p ,while Independent Resources were up 22.36% to 0.918p.