3rd May 2016 09:22
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Tuesday said it has been granted a further extension to the deadline of its proposed acquisition of a 60% interest in producing assets at the Permian Basin in New Mexico.
The deadline has been extended to May 31, and as payment for the extension, Nostra Terra will issue 282.1 million shares at 0.10 pence each to Kayne Anderson Energy Fund V QP LP. The payment on the closing of the proposed acquisition will then be reduced by USD370,000.
Nostra Terra added it is pursuing a debt raise to finance the acquisition.
Nostra Terra struck a deal to acquire the 60% stake from Alama Resources II LLC for USD3.0 million. Last month it already secured an extension to the deadline by which it was due to make an initial payment of USD2.7 million before the end of March. This was then extended to April 29.
"We're pleased to have been granted the extension by the seller as we continue to progress towards closing, where we anticipate that it will be financed with debt. We're also very pleased to welcome Kayne Anderson as our new largest shareholder and institutional investor," Chief Executive Matt Lofgran said in a statement.
Shares in Nostra Terra were trading up 6.7% at 0.0960 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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