Pennpetro Energy PLC (LSE:PPP) shares jumped more than 30% ahead of new well drilling, which is now expected to start in a matter of weeks.
The junior oil and gas company, in a statement, told investors that Houston-based firm J&J Drilling International had been hired to drill the planned wells in Gonzales County, east Texas.
It said the new drilling is scheduled to start in early August.
This follows a deal, last week, between Pennpetro and Globalvision Internationa which sees the London-listed firm take a backseat whilst retaining an economic interest in the assets.
Pennpetro's agreed to sell its Texas subsidiary, Nobel, in exchange for a 12.5% overriding royalty interest on the Gonzales County wells and a 10% profit share on any future wells developed within the company's 2,036 acres in Texas.
“I'm very pleased to inform shareholders that Globalvision have informed me that that they have now booked their drilling contractor for the Texas oil production operations,” chief executive Tom Evans said in a statement.
“J&J Drilling International are scheduled to mobilise to site in the early part of August.
“I look forward to providing numerous updates to shareholders as we move to close this important transaction for the Company and from the operations as they progress."
In London, Pennpetro shares were up 30.8% changing hands at 3.27p (and earlier, it traded up as high as 3.5p).