Rockhopper Exploration (LON:RKH) shares edged higher after it announced success with a drilling operation offshore Italy.
At the ENI operated Guendalina gas field a side-track to an existing well encountered all targeted horizons and all were gas bearing.
Two additional deeper gas levels were also encountered, Rockhopper said.
Production has now resumed from the well at a much higher rate than before.
Rockhopper said the well, labelled GU2-Dir A, has seen stabilised production of 440,000 cubic metres per day.
For the AIM quoted company’s 20% stake in the well that equates to 88,000 cubic metres per day or 580 barrels oil equivalent per day. It represents a 190% improvement from the 200 boepd seen prior to the programme.
The company said it now expects revenue of US$7mln from Guendalina for 2016.
Sam Moody, Rockhopper chief executive, said he was “delighted” with the result and highlighted that he anticipates the company’s 100% owned Civita field will start production before the end of this year.
“This boost to revenue and cash flow also reinforces our strong financial position and demonstrates real progress in the building of our Greater Mediterranean portfolio post the acquisition of Mediterranean Oil & Gas," he added.