SHARES in Hurricane Energy have surged five per cent after well results underlined the potential for an oil find it made West of Shetland to contain more than 500 million barrels.
Hurricane said a well to appraise the Lincoln find had flowed at around 10,000 barrels daily leaving bosses convinced the discovery is commercially viable.
Read more: Shetland oil pioneer shrugs off 'Monty Python slap in the face with a wet fish'
The Surrey-based company had said on Monday that the Licoln well had struck oil without providing further details.
Chief executive Robert Trice said yesterday Hurricane was delighted with the results. He indicated it expects to be able to bring the field into production quickly.
Noting that an expert report has found Lincoln could contain around 600m barrels, Mr Trice said: “This successful result brings us closer to monetising this huge resource.”
The results will stoke industry excitement about the potential of the West of Shetland area, in which some sector watchers reckon a multi-billion bonanza could be in prospect.
Read more: Giant West of Shetland field start up provides vindication for Hurricane boss
Hurricane has played a pioneering role in what remains a relatively under-explored area.
It recently started production from the Lancaster field, which is estimated to contain around 500m barrels.
North Sea heavyweight Spirit Energy bought in to the acreage containing Lincoln last year, when it agreed to fund an $180m drilling campaign.
Spirit and Hurricane will drill a well on Warwick lather this year. A well drilled on Warwick in July failed to produce oil or gas at commercial rates.
Scottish Gas owner Centrica recently put its majority stake in Spirit up for sale.
Shares in Hurricane closed up 2.34p at 47.64p
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