The company is planning to drill the second development well to a depth of about 5,300ft, which is expected to take about 30 days time and will be followed by completion and initial production testing.

Nostra Terra chief executive officer Matt Lofgran said the company drilled the first well on the prospect which reached payout and is a good producer.

"We’re pleased to be drilling the second well in the prospect where we anticipate similar results," Lofgra added.

"Each of our projects has been chosen because each offers further locations for subsequent, lowered-risk development wells. This should add to our growing portfolio of producing wells."

The company holds 16.25% working interest in the development of the wells.

Plainsmen Partners operate the Verde prospect.