VALIANT Petroleum saw its shares climb yesterday after it said a sidetrack on its operated Tybalt exploration well had found oil and it believed currently discovered volume to be commercial.
The British oil and gas operator said success on the West Tybalt prospect north-east of Shetland followed the discovery on East Tybalt announced in mid-April and it had encountered an oil-bearing reservoir section of about 550 feet: larger than predrill estimates. The company also said data collected implied up to three separate oil columns may be present.
Valiant said initial analysis suggested the reservoir quality in West Tybalt was better than that in the original East Tybalt discovery well and net pay was estimated at 100-200ft. It added that it would now use the data collected in the two Tybalt discovery wells to undertake a detailed reservoir and geological modelling exercise to determine the best way forward.
It said it believed the discovered volume was commercial and that there could be further upside in the block to the north and west.
Operator Valiant has an 80% interest with the remaining 20% held by Agora Oil and Gas (UK).
Valiant chief executive Peter Buchanan said: “We will now work to incorporate the extensive data collected into our understanding of the discovery in order both to move it rapidly forward towards commercialisation and better define the potential upside in the area, which will likely require further appraisal drilling in the near future.”
Shares in Valiant rose as much as 12% before closing up 7% at 680p.