New World Oil & Gas rose after tests showed the increased prospect of a large discovery at its B Crest project in Belize.
The firm said live oil shows in the Y3 and Hill Bank reservoirs at the site had been confirmed.
A decision has now been made to drill a deviated well from the existing vertical well location to get up structure in the Y3 and Hill Bank formations to evaluate the trap potential and to target additional potential oil accumulations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This decision was taken with the approval of the government of Belize, the company added.
Chief Executive William Kelleher said both the logs and significant amounts of live oil observed at the surface while drilling showed the firm was working on an active hydrocarbon system.
He added that with the new drilling plans he expected an improved trap potential, to obtain better log results, and to see an increase in the gross reservoir thickness.
The company's shares were up 2.8% at 09:15 following the announcement.
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
