Nostra Terra Inc. (NTI), a wholly owned subsidiary of North Terra Oil and Gas Company plc, has settled on a conditional agreement with North Petroleum International Company SA regarding Egypt’s East Ghazalat concession, the company announced on November 19.

Under the agreement, NTI will transfer its 50% participating interest in the concession to North Petroleum, the concession’s operator, with provision for the conclusion of the arbitration and no further cash calls or liabilities for any past losses, including the amounts for the payment of November and December 2015 cash calls and interest.

“I am very pleased that NTI has reached this agreement with North, which sees Nostra Terra effect a clean exit from this non-core concession. Following the arbitration NTI had the option to pay past cash calls and continue with the asset. However, we have taken the view that because the asset is loss-making and given we are not the operator, despite the fact that we feel that we could improve operations significantly, ultimately the best resolution is for NTI to transfer its interest and have no past or future liability,” Matt Lofgran, Nostra Terra CEO, said.

The agreement will be finalized under the condition of having the necessary formal approvals from the government.

However, if these approvals were not granted by December 31, 2019, then North Petroleum will have the right to terminate the agreement provided that the obligatory termination notice is served on or before April 30, 2020.

It is worth mentioning that Nostra Terra is an oil and gas exploration and production (E&P) company with a portfolio of development and production assets in Texas, US.