Valiant rose as much as 12 percent to trade at 656 pence as of 12:18 p.m. local time. EnQuest, which also explores in the Don field, rose 6 percent to 145.5 pence. Valiant’s Don Southwest “E” Panel exploration well encountered a gross recoverable 5 million to 7 million barrels equivalent, the Woking, U.K.-based company said in a statement today.
“This result confirms our long-held belief that the Don area contains upside potential which can be rapidly commercialized through the existing infrastructure,” Chief Executive Officer Peter Buchanan said in the statement.
Oil prices approaching $100 a barrel are improving the outlook for North Sea explorers. While production from the region is in decline, the U.K. government estimates that it still contains more than 2 billion barrels of reserves.
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