Paternoster teams up with Littoral Oil and Gas for new project in Algeria

2nd Jun 2015 08:41

AIM-listed Paternoster Resources shares got a boost on Tuesday after it announced a deal with Littoral Oil and Gas for a new project.The two firms will jointly evaluate, acquire and develop oil and gas assets, beginning in Algeria.Littoral has spent the past year evaluating existing subsurface data over the area. The firm has incorporated a new company, Atlas Oil and Gas, which will be 90% owned by Paternoster."Using Paternoster's corporate experience and Littoral's North African expertise, we will work together to acquire assets in known, hydrocarbon-producing basins," it said.The move is part of the Paternoster's strategy of investing to create companies that can acquire and secure material assets, then progress as independent entities.They selected Alergia based on its stability, contract terms and infrastructure and area planning to put their operational emphasis on leveraging technology to keep production costs down, with a quicker path to production and revenues.It anticipates that only "minimal" funds will be required to assess each asset before deciding whether to make an investment, which it will fund through existing resources."This is a great opportunity for Paternoster to get a foothold in the exciting North African oil sector, with partners who have a good deal of experience in the region," said chairman Nicholas Lee."Through working with Littoral, Paternoster will be able to identify assets in North Africa at an early and low cost stage and then, as appropriate, position them to move rapidly up the valuation curve whether through public or private markets as the company has done with a number of its other investments."