Nostra Terra Oil & Gas has acquired producing assets in the Permian Basin of New Mexico from Alamo Resources II, LLC. The company has agreed to pay US$3.0 million to acquire a 60% WI in producing assets located in the Permian Basin, out of which US$2.7 million is due by 31 March 2016 (Closing) and an additional US$0.3 million is due one year after the anniversary of Closing, payable in cash or shares in Nostra Terra at the discretion of Nostra Terra.

The company anticipates financing the acquisition with a debt facility covering all the acquisition cost. The net cash flow in the current oil price environment will service the debt while excess cash may be reinvested.

Tags: Nostra Terra Oil & Gas