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.
The Verde Prospect, in which Nostra Terra has a 16.25% interest, is operated by Plainsmen Partners.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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.
-
Luxury stocks rally after Richemont sales boomCartier owner Richemont’s robust results have boosted sentiment about luxury stocks – but are investors getting carried away?
-
Has inflation been tamed in the UK?After a surprise drop in inflation, the Bank of England is set for more rate cuts in the year ahead. But investors are cautious about pricing in too many cuts
