News

August 05, 2009

After Last Year’s Troubles In Ukraine, Nostra Terra Oil & Gas Turns To The USA

In common with a number of its peers operating in the FSU, London small cap E&P Nostra Terra Oil & Gas has decided to shift the balance of its investments from Ukraine to more politically accommodating parts of the world. As oilbarrel.com regulars will know, this is an increasingly common tactic for companies struggling to make headway in the FSU: Victoria Oil & Gas is now developing a gas/condensate field in Cameroon to offset its troubled projects in Kazakhstan and Russia while problems in Ukraine saw off Cardinal Resources, which reinvented itself as Taurex Resources focused on the US.

Nostra Terra similarly sees advantages to operating in a politically and geologically low-risk area.  Last month the AIM firm announced the US$785,000 acquisition of three oil and gas properties in Kansas, which it hopes will be the first in a series of similar deals that will fast-track the company’s journey to sustainable production and cash flows.

This comes after the company had a difficult year with the redevelopment of the 36-well Oktyabrskoe licence in Ukraine.  The...