Nostra Terra (AIM: NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce an increase of US$600,000 cash for the sale of its interest in the Chisholm Trail Prospect, which was initially announced in June 2016. Nostra Terra had previously reported the sale amount of US$2.1 million. This figure is now revised up to US$2.7 million. The funds were received on 7 December 2016.
Background to upward revision
The upward revision in the sale price of Nostra Terra's interest in the Chisholm Trail Prospect is due to an adjustment made for an interest in a further well and associated mineral rights, which was not included in the original list of interests in the sale and purchase agreement entered into between the buyer and seller of the Chisholm Trail Prospect in June 2016 ("Agreement") and which Nostra Terra joined as a minority interest. This adjustment is a contractual term of the Agreement and was agreed between the buyer and seller in November 2016, after consulting Nostra Terra. It was finalised with the receipt of funds.
Outstanding balance from original reported payment
Of the initial US$2.1m previously reported as due to Nostra Terra, US$100,000 has been held in escrow as is usual closing practice. Per the contract, the full US$100,000 cash will be released to Nostra Terra in early 2017.
Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:
"Having just acquired our 80% working interest in the Pine Mills oil field, this is most welcome news for Nostra Terra. We're pleased to receive the additional non-dilutive funds. The additional capital further strengthens our balance sheet, at a pivotal point in Nostra Terra's turnaround. The extra funds will increase our ability to unlock value across our portfolio, building both oil production and reserves.
Workovers are already taking place this month, both at Pine Mills and our other recent acquisition in the Permian Basin. Our goal is to increase oil production, while also continuing to pursue new acquisition targets with existing cash resources. We look forward to providing further updates shortly."