Nostra Terra and Independent Resources set up joint venture in North Africa

Under the terms of the agreement, the two companies have set up a joint venture to pursue new projects in North Africa and are currently discussing the first potential acquisition.

In a statement released on Monday, the London-listed groups said the joint venture will focus on projects which offer the opportunity to improve production via better field and well management and by cutting operating expenses.

"The lower oil price environment we are experiencing is presenting very interesting opportunities for investment and growth not just in America but globally,” said Nostra Terra chief executive Matt Lofgran.

“Partnering with Independent Resources gives us boots-on-the-ground experience of the countries we are immediately focusing on, with immediate acquisition opportunities of producing assets already being proposed and due diligence in progress.”

Greg Coleman, chief executive of IRG, described the deal as a move that will help the company with its expansion plans.

“Their strategic and operational agendas are very similar to our own and we believe that there is much experience in our respective companies that will complement each other,” he said.

“Co-operation with Nostra Terra will allow us to accelerate our acquisition programme."

As of 0831 BST on Monday, Nostra Terra shares were up 8.70% to 0.125p, while Independent Resources were down 10.95% to 0.623p.