Nostra Terra Oil and Gas Plc (AIM: NTOG) has signed a strategic joint venture agreement with Independent Resources Plc (LON: IRG), an AIM-listed exploration and production company focused on the acquisition of producing assets in the Mediterranean and North Africa region.
Under the terms of the agreement, the parties will cooperate in areas of project identification and due diligence, financing, geological exploitation, technical support, operations and procurement with a geographical focus on North Africa, primarily Egypt and Tunisia.
Together the companies will work on sourcing opportunities where there is scope to increase production through better field, reservoir and well management; reduce operational costs; and deliver good economic returns even at current oil pricing.
As partners, the joint strategy for delivering value will involve investing in assets where the application of modern industry practices including precision drilling technology, including horizontal drilling and multi stage well stimulation; precise 3D seismic mapping; detailed log and technical evaluation; and multi-zone well completions.
While the ability to operate licenses will be sought, non-operated investments with a significant working interest and hence scope to influence field operations will also be considered. Nostra Terra and Independent Resources will establish a new legal entity that will be owned jointly by them and used to execute new investments.
Matt Lofgran, CEO of Nostra Terra, commented, "The lower oil price environment we are experiencing is presenting very interesting opportunities for investment and growth not just in America but globally. Partnering with Independent Resources gives us boots-on-the-ground experience of the countries we are focusing on, with immediate acquisition opportunities of producing assets already being proposed and due diligence in progress."