RNS Number : 5933Z
Independent Resources PLC
21 September 2015
 

 

INDEPENDENT RESOURCES PLC

('Independent Resources' or the 'Company')

 

Joint Venture Agreement with Nostra Terra Oil & Gas plc

 

Independent Resources is pleased to announce the signing of a strategic joint
venture agreement with Nostra Terra Oil & Gas plc ('Nostra Terra'), an AIM 
company with a portfolio of producing interests in the USA and a similar 
strategic intention to that of IRG to invest in producing or near-production 
assets in North Africa.

Under the terms of the Agreement, the parties will co-operate in areas of 
project identification and due diligence, financing, geological exploitation, 
technical support, operations and procurement with a geographical focus on 
North Africa with immediate attention focused on Egypt and Tunisia. We are 
specifically targeting existing producing assets with an immediate focus on 
cash flow, where we can leverage the equity investments and grow our portfolio.

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

will offer scope to significantly increase recovery from fields that the 
management of Independent Resources and Nostra Terra would regard as having 
historically failed to produce to optimal levels.

While the ability to operate licences will be sought, non-operated investments 
with a significant interest and hence scope to influence field operations will
also be considered.

Nostra Terra and IRG will establish a new legal entity that will be owned 
jointly by them and which will be used to execute new investments in due 
course.  We are actively progressing negotiations on our first co-investment
opportunity and discussions and due diligence are ongoing on additional 
opportunities.

Greg Coleman, CEO of Independent Resources, commented:

'We are really pleased to be working together with the team at Nostra Terra to
advance co-investment opportunities.  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. Co-operation with Nostra 
Terra will allow us to accelerate our acquisition programme.'

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 immediately focusing on, with immediate 
acquisition opportunities of producing assets already being proposed and due 
diligence in progress.  We're happy to be involved with a strong team as we 
look to build a presence in the area.'

About Nostra Terra

Nostra Terra Oil and Gas Company plc (AIM: NTOG) is a fast-growing exploration
and production company focused on emerging plays within established hydrocarbon
regions of the United States.   Nostra Terra's portfolio includes assets in
Texas, Colorado, Oklahoma and Wyoming.

About Independent Resources

Independent Resources (AIM: IRG) is an exploration and production company 
focused on the acquisition of producing assets in the Mediterranean and North
Africa region.  The company owns 86.345 per cent. of the Ksar Hadada onshore 
exploration licence in Tunisia.

For more information, please visit www.ir-plc.com or contact:

 

Greg Coleman
Independent Resources plc
020 3367 1134

Mark Taylor
Charles Stanley Securities
020 7149 6000


(Nominated Adviser & Joint Broker)
Oliver Stansfield
Brandon Hill Capital
020 3463 5000

Jonathan Evans
(Joint Broker)

Simon Hudson
Tavistock Communications
020 7920 3150

For more information, please visit www.ntog.co.uk or contact:

Matt Lofgran
Nostra Terra Oil and Gas Company plc
[email protected]
+1 480 993 8933


Lindsay Mair
Sanlam Securities UK Limited
+44 (0)20 7628 2200

James Thomas
(Nominated Adviser & Broker)

Jamie Vickers (Broking)
Gary Middleton
    
Walbrook PR Ltd
+44 (0)207 933 8797
(Media Relations)
    



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