On 19 November 2019, Nostra Terra Inc. (NTI), a wholly owned subsidiary of North Terra Oil and Gas Company plc, has settled a conditional agreement with North Petroleum International Co. (North Petroleum) regarding Egyptâs East Ghazalat concession, Abu Gharadiq Basin. Under this agreement, NTI will transfer its 50% participating interest in the concession to North Petroleum, the concessionâs 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.  Matt Lofgran, Nostra Terra CEO said âI am very pleased that NTI has reached this agreement with North Petroleum, 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 liabilityâ.  The agreement will be finalized under the condition of having the necessary formal approvals from the Egyptian government. However, if these approvals are not granted by December 31, 2019, North Petroleum will have the right to terminate the agreement provided that the obligatory termination notice is served on or before April 30, 2020.  The East Ghazalat concession is operated by PetroSafwa, a JV between EGPC (50%), North Petroleum (25%) and Nostra Terra (25%). The contract includes two blocks, Safwa (Dev) and North Dabaa (Dev), both granted to PetroSafwa in 2011 and 2014, respectively.  The Safwa (Dev) block comprises the Safwa oil field discovered in 2010, and the North Dabaa (Dev) includes the Dabaa North 1 gas discovery found in 2013.
Nostra Terra has reached a conditional agreement with North Petroleum under which it will transfer its 50% interest in the East Ghazalat concession to operator North, thereby ensuring its withdrawal.