Nostra Terra, the AIM quoted oil and gas producer, said it had signed an agreement with the operators at its Verde prospect in Colorado to drill a second development well.
The second well is currently being permitted, the firm said, with drilling expected to begin around the end of September.
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"I'm delighted by the performance of our first Verde discovery well which exceeded our initial expectations, producing just over $1m gross in nine months," said Nostra's Chief Executive Matt Lofgran.
"This should add to our growing portfolio of producing wells," he added.
The firm's shares rose 7% as investors were cheered by the news.
Nostra said its full year revenues of £244,000, announced in May, were expected to strongly improve in 2012.
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