Desire Petroleum Plc, the U.K. explorer focused on the Falkland Islands, said its Rachel North well discovered oil.
After drilling to a depth of 3,052 meters (10,000 feet), data indicate that the well encountered 57 meters of net pay in multiple zones, the company said in a statement in London today. Desire said it will now complete logging and sampling to analyze the quality and significance of the discovery.
Desire shares have gained almost 60 percent since the end of October on speculation it would strike oil. Earlier this year, Rockhopper Exploration Plc made the first potentially commercial find around the South American islands that U.K. Prime Minister Margaret Thatcher went to war to defend in 1982.
“This discovery, combined with Rockhopper’s Sea Lion discovery, confirms our belief that the eastern flank play fairway in the North Falkland Basin is highly prospective and that further oil fields will be discovered in this area,” Stephen Phipps, chairman of Desire, said in a statement.