April 10 (Bloomberg) -- Rocksource ASA, a Norwegian explorer, climbed to its highest level since September 2011 after partner Verbundnetz Gas AG said their oil discovery in the Norwegian Sea is bigger than expected.
Rocksource, based in Oslo, rose as much as 47 percent to 4.66 kroner a share, the highest in 2 1/2 years. The stock traded 32 percent higher as of 1 p.m. About 8.2 million shares have been traded, more than five times the average daily volume during the last three months.
The Pil discovery could hold as much as 132 million barrels of oil and 6 billion cubic meters of natural gas, according to statements today from the Norwegian Petroleum Directorate and Germany’s VNG, which operates the license with a 30 percent stake. Rocksource, which has a 15 percent stake, had already seen its shares more than double when the find was announced on March 6. At the time, the company said the find may be larger than a pre-drill estimate of 20 million to 50 million barrels of oil equivalent.
“The test result has confirmed excellent reservoir properties, and with the operator’s resource estimates we are confident that Pil is a commercial discovery,” Rocksource Chief Executive Officer Chris Spencer said in a statement. “The upside potential, both within the Pil closure and in follow-up prospectivity within the license, means that PL586 could be a ‘company-maker’ for Rocksource.”
The Pil discovery, 33 kilometers (21 miles) southwest of Statoil ASA’s Njord field, is close enough to be tied into existing infrastructure, Rocksource has said. It follows Statoil’s Snilehorn discovery in the same area last year.
Faroe Petroleum Ltd., with a 25 percent stake in Pil and 7.5 percent of Snilehorn, rose as much as 13 percent to 142.5 pence in London trading. Spike Exploration, a private company, is the other stakeholder at Pil with 30 percent.
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