Exploration and production company Longboat Energy (LON: LBE) saw a jump in its shares Monday morning after announcing a material discovery at the Egyptian Vulture exploration well.
The discovery was made in PL939, the second well in its fully-funded, seven-well exploration programme.
“The exploration well 6407/1-9 in the Norwegian Sea encountered light oil in the primary target in the Lower Cretaceous (Cenomanian) Intra-Lange Formation,” said Longboat Energy.Â
The company added that an extensive programme of data acquisition and sampling has been carried out and the preliminary analysis of the oil sample shows a very light oil.
The operator's preliminary estimate of recoverable resources in the discovery is 19 to 63 million barrels of oil equivalent (MMboe), and the oil-in-place volume has been estimated at 220 to 440 MMboe.Â
Helge Hammer, CEO of Longboat, said: “We are very pleased to have made a material light oil discovery in our second exploration well, Egyptian Vulture, following the Rodhette discovery announced only two weeks ago.Â
“The large areal extent and oil-in-place volume range demonstrates the very significant upside potential of this exciting discovery. We now look forward to working with the operator to mature the forward appraisal plan for Egyptian Vulture.”
Longboat Energy's shares have rallied over 14.7% to 85p so far on Monday.
Should you invest in Longboat Energy shares?
Longboat Energy shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are LBE shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies