Ithaca Energy PLC (LSE:ITH) has declared success with the K2 exploration well in the central region of the UK North Sea, whilst keeping tight lipped on details.
The company, which recently returned to the City under public ownership, told investors that the K2 well had "discovered that hydrocarbons were present in the reservoir in the Forties member sandstones, with 45 feet of net thickness".
It said in the statement that logging work aimed to establish reservoir quality and further analysis will be performed to determine future activity and estimate the discovery’s potential recoverable resources.
"I am delighted to report encouraging well results at K2, located in close proximity to existing infrastructure, further enhancing our portfolio," said chief executive Alan Bruce.
Ithaca owns a 50% stake in the project and partner Dana Petroleum holds the other 50%.
In London, Ithaca shares moved up 3.6p or 2.26% to 163p which values the company at around £1.64bn.