Nostra Terra Oil and Gas Company said it was in advanced discussions with regards to a lease opportunity at its Mesquite asset in Texas.
The new 160-acre lease opportunity presented the company with an immediate opportunity to drill a half-mile horizontal well to prove up and increase its overall proven and probable oil reserves at Mesquite.
The new lease was standalone, near, but not adjacent to, the existing acreage.
Accordingly, Nostra Terra said it expected to be able to bring in partners on the new lease, whilst still maintaining a 100% interest in the existing Mesquite asset.
The company said it intended to fund drilling of the proposed horizontal well using existing cash resources and through selling off a percentage working interest in the new lease to certain oil and gas investors.
Nostra Terra said it had already received expressions of interest from potential industry partners.
At 8:28am: (LON:NTOG) Nostra Terra Oil Gas Company PLC share price was +0.13p at 2.48p