Pennpetro Energy PLC (LON:PPP) shares rose sharply in early deals, before cooling, as the company told investors that recently completed well optimization in Texas has boosted output.
Oil production from the Chalk Talk #1H well more than doubled in the past week of testing, with the rate rising to 248 barrels of oil per day (bopd) since Wednesday – up from 113 bopd in the prior week.
The well has been undergoing testing for 20 days and in that time has yielded a total of 3,184 bopd with the daily rate averaging 159 bopd over the test period.
"The results of the oil production from our CT1H well test are excellent,” said chief executive Tom Evans.
“We continue to optimize the performance of this well some 20 days into testing.
“We are still seeing a generally increasing trend in our daily oil production, which is certainly highly encouraging. Extended well testing continues."
In London, PennPetro shares changed hands at 1.97p, up 1% - having initially climbed to 2.15p in opening trade.