Nostra Terra update disappoints

19th Sep 2011 09:06

Nostra Terra, the AIM-listed oil and gas producer, saw its share price drop sharply on Monday morning after announcing underwhelming production rates for its Agnello number 1 well in the Vintage Hills Prospect. During the initial 30-days of production, the well produced an average rate of 59 barrels of oil equivalent per day (boed), with 35% of production being oil. This period included several days when the well was not producing due to equipment delays. The well has been producing an average rate of 87 boed over the last two days, with 43% of production being oil.The initial well on the Verde prospect is in the final stages of completion, the company said. Construction of production facilities has been completed and the pumping unit is being installed. Production is expected to commence within days and the firm will provide 30-day production figures when available.The company has a 1% working interest in Vintage Hills, which is located within the established Giddings oil and gas field in Brazos County, Texas. Matt Lofgran, chief executive, said: "We are happy to continue to add production and income to our growing portfolio of established oil and gas fields in the US. As we have stated in recent announcements, our focus has been increasingly on larger deals that will have a far greater impact on our income generation. "To this end, we are targeting additional acreage and higher working interests with a view to increasing both the size of the company and its revenues."The share price fell 18.20% to 0.57p by 09:00. NR