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A Middle East consortium has picked up nearly 30% equity in the troubled Aim-listed company Victoria Oil & Gas (VOG:AIM) and says it may make an offer for the entire firm. The group is being led by Noor Capital, a Dubai-based investment house, and Falcon Petroleum, a private upstream-focused oil and gas company.

It has acquired a 29% stake in the exploration and production firm which is primarily based in Siberia and Kazakhstan. And in an announcement on the transaction the consortium says it has the option to bid for the whole company in the future if this serves its interests.

Initially in response to the news the share price was up nearly 15% but it has since retreated to trade for around 25p

Victoria, which hit a peak of £2 two years ago, endured a difficult 2007 with losses widening sharply as the company struck a number of dry holes. This prompted a ‘top to bottom’ review of the business with Chairman Kevin Foo describing this year as a ‘critical turnaround period’ for the firm. Ex-CEO Tony Porter stepped down at the end of last year at the conclusion of his contract and a successor is yet to be named.

The company does have a Kazakh oilfield which offers modest production and this deal may help improve Victoria’s strike rate. Management has said that Falcon can help Victoria gain access to the emerging passive seismic technology which may improve the firm’s understanding of the sub-surface on its acreage.