Nostra Terra places shares at discount

3rd Dec 2009 09:28

The share price of oil and gas tiddler Nostra Terra fell to earth with a bump on Thursday morning as the company announced a placing of shares at a discount to last night’s closing share price.The company is to raise £3.185m through a placing of 318.5m shares at 1p. The day before the announcement the shares closed at 1.34p.The newly issued shares will increase the number of Nostra Terra shares in issue by 25.87%.The funds from the issue will be used mainly to develop the Bloom Property Development in Russell County, Kansas.Turning to its other assets, the company said that development work on the first of several wells to be drilled at the Boxberger field has been completed, and the well should go into production before the end of the year.Work is progressing on two production wells and one injection/saltwater disposal well on the Hoffman property. Production is expected to commence in the early part of the first quarter of 2010.