Valiant Petroleum Plc and EnQuest Plc, two explorers in the North Sea, jumped after Valiant said it found oil in the Don field.
Valiant rose 12 percent to 672 pence as of the 4:30 p.m. close in London. EnQuest, which also explores in the Don field, added 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.