26th Apr 2018 13:34
LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC said Thursday a dispute between its subsidiary and North Petroleum International Co SA has been referred for arbitration.
Sahara Resources Inc, Nostra Terra's subsidiary, has a 50% stake in the East Ghazalat concession in Egypt around 240 kilometres south-west of Cairo, which is operated by North Petroleum.
Nostra Terra believes North Petroleum, which is a subsidiary of Chinese state-owned ZhenHua Oil Co Ltd, has failed to abide by its joint operating agreement and also believes there is significant scope for expanding production from East Ghazalat.
The company said, however, that talks with North Petroleum have hit a wall, and thus North Petroleum has referred the matter to the London Court of International Arbitration.
Chief Executive Matt Lofgran said: "Our goal has always been to do what is best for the concession and will deliver most value for all stakeholders. We believe that arbitration will be the best way forward to realize value at this point.
"We are great believers in both the unrealized potential at East Ghazalat and also the other exciting oil & gas opportunities in Egypt. We have developed excellent in country relationships and we look forward to building on those in the future."
Shares were down 0.3% on Thursday at 4.06 pence each, having hit 3.62p earlier in the session.
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