Frontera Resources Corporation said a sustained delivery of natural gas had been confirmed during testing at a well in Mtsare Khevi area of Georgia.
The flowing interval at the Ud-2 indicated the presence of commercial gas within the Miocene-aged Gareji reservoir, the company said.
"I am absolutely delighted to report about an early and potentially very material success at the second of the three testing intervals at Ud-2 well," chief executive Zaza Mamulaishvili said.
"We eagerly await the next phase of a scaled-up mechanical stimulation and post-stimulation flow rate of the second testing interval," he said.
"But I believe the early results of the testing already both prove a material sustained deliverability of the Ud-2 well and provide significant confirmation as to the Block 12 potential of the Gareji reservoir, development of which will be transformational for the Ccmpany and Georgia's energy industry."
At 2:36pm: (LON:FRR) Frontera Resources Corporation share price was +0.07p at 0.65p