LONDON (Alliance News) - Nostra Terra Oil & Gas Co PLC on Tuesday said it is to start farm-in talks for its Mesquite asset in the US Permian Basin.
As previously reported, Trey Resources has delivered the first complete field development plan for Mesquite, covering 1,384 net acres.
Based on the analysis, Nostra Terra said, there at 2.4 million barrels of recoverable oil in the acreage, giving a USD21.6 million valuation at current oil prices.
Nostra Terra can now begin farm-in talks, and has opened a "data room" to allow potential partners to assess the asset.
Chief Executive Matt Lofgran said: "Now we have the first complete iteration of the Mesquite field development plan, we are in a position to commence farm-in discussions.
"Mesquite is an extremely ambitious project for a company of Nostra Terra's size, with a great deal of potential to expand the current acreage," he continued.
"Teaming up with the right industry partner could unlock substantial value for shareholders, both in terms of the current NPV10 estimates and securing a much greater regional footprint."
Shares were down 1.1% on Tuesday at 2.67 pence each.
Nostra Terra (NTOG)