Nostra Terra flags increase in reserves estimate

27th Oct 2011 08:22

Nostra Terra, the AIM-listed oil and gas producer with assets in the USA, saw its share price rise on news that its Verde well is producing above expectations. The Verde Prospect unit, in which the company has a 16.25% working interest, produced an average rate of 64 barrels of oil per day, with 100% of production being oil, in the initial 30 days of production. The firm has said that once a minimum of 6 months production has been established, this initial well, together with potential off-set locations, will allow the company to post an increase in its aggregate reserves.Matt Lofgran, chief executive of Nostra Terra, said: "This first well has de-risked the leases, thus creating value for the entire prospect. The well is demonstrating a relatively shallow decline curve, and along with production rates, is performing above our expectations." The share price rose 15.79% to 0.55p by 08:32. NR