LONDON (ShareCast) - (Sharecast News) - Exploration and production company Nostra Terra has seen production at its Permian Basin assets make an "increasingly valuable contribution" to its bottom line of late.
Nostra Terra, which owns a 53.25% working interest in the Twin and G6 wells, located on the Permian Basin in Mitchell County, Texas, saw combined production from the two wells hit 63 barrels of oil per day throughout July.

The AIM-listed firm stated flow rates at the site had now stabilised following an initial decline, which the company believes would be more meaningful for long-term analysis than initial rates.

Following the success seen at Twin and G6, Nostra Terra announced its intention to commission an independent engineer to update the reserves report for its existing Permian Basin leases before year-end.

Nostra Terra intends to submit applications for permits to drill three new wells at its Mitchell County leases while simultaneously reviewing "multiple acquisition opportunities" to expand its footprint in the Permian Basin and across Texas.

Matt Lofgran, chief executive of Nostra Terra, said, "Production at our Permian Basin assets is making an increasingly valuable contribution to Nostra Terra. Not only are we able to reinvest free cash flow, but the faster than expected payback rate of the Twin Well is further evidence of the strength of our model."

As of 1000 BST, Nostra Terra shares had slipped 2.18% to 3.81p.

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