Petro Matad Limited (AIM:MATD, OTC:PRTDF) shares soared in Thursday's early trade after its Gazelle-1 well, in Mongolia, exceeded expectations during testing, flowing up to 460 barrels of oil per day without artificial lift.
The well is now being prepared for production, with completion and installation of surface facilities underway.
Gazelle-1 was perforated across an 8-metre zone in the Tsagaantsav Formation, and flowed at stabilised rates ranging from 160 to 460 barrels per day on varying choke sizes. No water was produced and oil gravity was measured at 43° API.
"We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are prioritising getting the well onstream as it shows the potential to significantly increase our daily production revenue," chief executive Mike Buck said in a statement.
The company said it is targeting production start-up before the end of October.
In London, Petro Matad shares climbed 29% to 1.07p.