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.