Longboat Energy PLC (AIM:LBE) shares shot up 15% in early deals as it announced what is described as a significant new oil and gas discovery in the Norwegian North Sea.
The Kveikje exploration well, operated by Equinor, made a discovery with excellent reservoir quality located close to existing infrastructure, the company said.
A preliminary estimate of the discovery’s recoverable resources is pitched at 28mln to 48mln barrels gross, which is higher than the pre-drill expectations.
"Longboat is very pleased to have made a significant commercial discovery in the Kveikje well,” said Longboat chief executive Helge Hammer.
"Excellent reservoir quality, close proximity to infrastructure and multiple development options make this an important and valuable resource and we look forward to working with the operator to mature the forward plan.
“We believe that this is an asset that can be commercialised via either development or transaction given the high-value barrels that we have discovered.”
Longboat owns a 10% interest in the Kveikje well.