There may be some relief for investors in Nostra Terra Oil & Gas (LON:NTOG) who have seen the value of their holding almost half in value in the last six months.
For the group, which is ostensibly focused on developing oil assets onshore in the US but does have a joint venture in Egypt, has registered some interest in its Texas land package.
The Mesquite Prospect covers 1,384 net acres of the Permian Basin, which has been a magnet for investment.
Consultant Trey resources is working on a volumetric report for the project, which is due next month, while the company has identified sites for eight potential horizontal wells.
In an update, in which it outlined its hedging arrangements and provided the latest production numbers, it said: “Reflecting the competitive interest in regional horizontal oil plays, Nostra Terra has already received four unsolicited expressions of interest from potential industry partners wherein Nostra Terra would be carried by a partner in initial drilling costs.
“Although it is premature to advance any such discussions, Nostra Terra's Board believes this is a promising indicator for the future development of Mesquite.”
The shares, which were 4.1p six months ago, closed Friday down 2% at 2.35p, valuing the NTOG at a princely £3.5mln.