Europa Oil & Gas (LON:EOG) shares climbed in early trading, with a positive initial result from the Barchiz-1 exploration well in Romania.
The company encountered minor oil shows and mud gas indications between 268 and 275 metres.
According to Europa the initial result provides evidence of an active petroleum system in the Barchiz area.
The news lifted the share price 3.7 percent in early deals to 14 pence.
Drilling continues in the Barchiz well and the company expects to reach target depth at around 1,400m in two to three weeks time.
Europa announced the spudding of the Barchiz well on 18 October.
The Barchiz prospect is 10 kilometres from, and on trend with, the Geamana oilfield with 50 million barrels of oil reserves.
The Barchiz prospect has an estimated 94 million barrel oil-in-place resource (pre-drill).
Furthermore there are five additional leads on-block in the same structural play, which Europa believes will be significantly upgraded if Barchiz proves successful.
"Barchiz is Europa's first well in the prolific Carpathian thrustbelt oil play and along with the additional leads and prospects identified in the Brates and Cuejdiu blocks, provides a strong conveyor belt of exciting exploration potential going forward," managing director Paul Barrett said last month.