AIM-listed Nostra Terra has taken a 10.9% interest in Magnolia Oil at a knockdown price.
Nostra acquired 204,226,748 ordinary shares of £0.001 each in the US focused exploration and production company.
The company is acquiring the interest in Magnolia at an approximate 47% discount to the prevailing price of shares.
The shares have been purchased from Steven Snead, the former CEO of Magnolia, and his family.
Nostra Terra also has the option to pay the full consideration in cash should it decide.
For the year ended 31 December 2015, Magnolia reported revenues of US$1.9million and a loss before tax of $9.8million.