House broker finnCap has lifted its price target on Independent Oil and Gas (LON:IOG) to 65p a share from 59p following its successful fundraise and the award of a new block in the recent North Sea licensing round.
The licence contains the Elgood, Tetley and Rebellion - prospects, which lie between its Blythe and Cronx fields.
Elgood was drilled in 1990, and the discovery’s recoverable reserve is estimated at 2.5mln barrels oil equivalent.
"This has substantially strengthened both the company's portfolio and its hub strategy," noted analyst Dougie Youngson, who added the firm will update the CPR to take into account the Elgood discovery and other prospects.
It will also progress the field development plan for Blythe on a stand-alone basis or a joint venture development of Blythe, Cronx and Elgood, he added.
On November 5, the company revealed it had raised £450,000 through the issue of shares to new and existing shareholders at 11p a pop.