Nostra Terra said Independent Resources (Egypt) Ltd -- its JV with Independent Resources Plc -- has reached an agreement with TransGlobe Petroleum International Inc concerning the early repayment of the $2.5m loan note.
The loan note was issued to TransGlobe in October 2015 and repayable on 30 September 2017. Under the terms of the Agreement, IRE will pay $200,000 to TransGlobe in full and final settlement of the Loan Note.
IRE's 50% interest in the East Ghazalat concession (the "Concession") is not affected by this Agreement.
Nostra Terra will pay US$100,000 for its proportional share of the Agreement.
This extinguishes the liability of approximately US$1.3 million owed by Nostra Terra (including accrued interest), leaving no further debt on the asset.