Nostra Terra & Oil (LON:NTOG) announced on Wednesday it has raised £1.15 million to further develop operations at its Mesquite asset.

The oil and gas exploration company had raised the funds to ‘strengthen its position’ in the Mesquite asset in the Permian Basin, ahead of also locating a potential farm-in partner.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented on the announcement:

“Our goal with Mesquite is to find the right industry partner to work with on developing the asset. By significantly strengthening our balance sheet and welcoming institutional investment into the Company at this time, we are positioned to retain more interest in the asset going forward.

“The Board believes the Permian Basin remains one of the most attractive oil provinces globally, attracting billions of dollars in investment each year. In the Mesquite target area Nostra Terra still has first mover advantage, so it is important for a company of our size to move as quickly as it can in securing its position. We are on course to deliver substantial value to shareholders over the coming years.”

Earlier this month shares in the company rose after it announced a threefold increase in oil reserves at its assets at Pine Mills in East Texas and its Permian Basin assets in West Texas, including Mesquite.

Nostra Terra Oil & Gas is an AIM-listed company. It was founded back in 2005. as well as interests US, it also operates in Egypt.

Shares in the London-listed firm are currently +1.53% as of 11:43AM (GMT), as investors react to the announcement.