Shares in AIM-listed Kea Petroleum leapt on Wednesday after the company reported successful initial results from its Puka 1 production testing in the Taranaki Basin of New Zealand.
The well delivered oil flow rates of up to 290 barrels of oil per day (bopd) and gas flow rates up to 2.2m cubic feet per day, with the first shipment of oil taking place on August 8th.
Production has now been temporarily stopped to establish initial pressure build up, after which the main flow period will then begin for a period of up to 30 days.
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The company anticipates that the flow rates from the main flow period will be higher than the controlled rates recorded during clean up.
Kea's plans are "well advanced" for extending the Puka site and relocating the existing Wingrove production facilities to Puka in order to begin production and oil sales following the completion of the current test.
The firm is also examining options for additional seismic to be acquired in the fourth quarter of 2012 to assist in delineating the extent of the greater Puka field and the placement of future wells.
Ian Gowrie -Smith, Kea Chairman says: "Kea believes it is now on the brink of becoming a commercial oil and gas producer as well as an explorer. Early test production results from Puka 1 are most encouraging. Further testing of Puka-1 should enable us to establish reservoir size and the commercial consequences of this discovery."
The share price soared 3.85% to 9.25p by 13:06.
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