Shares in Premier Oil PLC (LON:PMO) rocketed after the mid-cap producer announced a new “world class” oil discovery offshore Mexico, with the Zama-1 exploration well unearthing an estimated 1bn barrel find.
The well hit a gross oil bearing interval spanning 335 metres, with up to 200 metres of net oil bearing reservoir. Light oil has so far been recovered to surface.
Premier and its partners are now setting a liner to protect the discovered reservoirs, before drilling deeper to test other exploration objectives.
WATCH: Premier Oil's offshore Mexico discovery 'a world class success' - CEO Tony Durrant
"We are delighted to be announcing this significant new oil discovery offshore Mexico,” said chief executive Tony Durrant.
“We have encountered a very substantial oil bearing interval which indicates over 1 billion barrels of oil in place, a commercial standalone development which adds materially to Premier's portfolio of assets worldwide.
“It is particularly pleasing that our strategy of focusing our exploration portfolio on high impact opportunities in proven but under-drilled basins has led to this world class discovery with our first well in Mexico.”
Shares surged by 39% throughout Wednesday trading to 64.2p.
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