Prospex Oil and Gas PLC (LON:PXOG) rocketed around 40% in early trade after revealing a ‘commercial’ gas discovery in Romania.
Operator Raffles Energy S.R.L. made the discovery at the Bainet-1 exploration well in Suceava Concession in the country’s northeast.
Bainet-1 was drilled to 600 metres and encountered a nine-metre reservoir with eight metres of net gas pay consisting of a good quality sandstone.
This is similar to that found in other producing fields in the concession.
Prospex rocketed to 75 pence in early trade, before settling back to 59.3p, up 29%.
The company’s wholly-owned subsidiary PXOG Massey Limited has a 50% interest in Suceava Exploration, which operates in a proven hydrocarbon basin.
Commercial discovery with second well
Prospex chairman Bill Smith said: “To have made a commercial gas discovery with just the second well in which we have participated is, in our view, testament to the quality of the technical work we carry out when evaluating potential projects.
“This sees us focus on proven onshore European plays such as Suceava which are close to markets and have excellent access to infrastructure.
“As well as generating the company’s first production and revenues in the near term, the Bainet gas discovery will provide an excellent platform from which to evaluate the multiple conventional shallow gas prospects and leads identified across the concession.”
During the final 11-hour test, natural gas containing over 99% methane flowed at a daily rate of approximately 33,000 cubic metres.
The well has now been placed in conservation mode until it is connected to the Raffles operated Bilca gas processing plant.
Experimental production in Q2 2018
The company expects that experimental production from the discovery will commence in the second quarter of next year.
Raffles chief executive Doru Morariu said, “Over the coming years, Raffles plans to continue the exploration activities in the Suceava Concession with a petroleum operations programme focussed on the evaluation of a portfolio of shallow gas prospects and the selection of the most prospective candidates for further exploration drilling.”