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.

Mahinaz El-Baz 317 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.

Login

Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password

Register