Echo Energy Sells Stake to Partner Nostra Terra

Echo Energy Sells Stake to Partner Nostra Terra

Echo Energy stated that it has sold its 25% interest in Egyptian East Ghazalat license to its joint venture partner, Nostra Terra, for $500,000, with an initial $100,000 paid once a regulatory approval comes from the Egyptian General Petroleum Corporation (EGPC), Proactive Investors informed.

The remaining $400,000 are planned to be paid in two tranches.  One tranche is triggered when the concession yields production of 800b/d of oil for 30 consecutive days, and the other tranche will be settled when the output reaches 1,000b/d for 30 straight days.

The East Ghazalat concession is located in the Western Desert, around 300 km west of Cairo. Vegas Oil & Gas and TransGlobe Energy discovered the Safwa oil field in 2010 and were awarded a development lease in 2011, according to Pipeline.

In October 2015, AIM-listed Nostra Terra Oil & Gas, in a joint venture with Independent Resources, acquired a 50% interest in the East Ghazalat concession from TransGlobe Petroleum International, a wholly owned subsidiary of TransGlobe Energy Corporation for $3.5m.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.


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