Premier Oil said today it had made another “encouraging” oil discovery on its central North Sea Catcher block.
The firm said an exploration well drilled by the semi-submersible Sedco 711 rig on the Carnaby prospect had found good quality oil similar to its nearby Catcher discoveries.
Initial results suggested 51ft of net oil in Tay sandstone within an estimated 86ft oil column, added Premier.
Premier is operator and 50% owner of the Catcher block.
Chief executive Simon Lockett said: “The discovery of good quality oil in the western part of the block is encouraging and the results from the Carnaby well will be used to calibrate the remaining exploration potential in this part of the block.
“In addition, the data from the Carnaby well will contribute to the ongoing development planning for the Catcher area which continues to move forward focusing on the production of oil from the previous discoveries on Block 28/9a.”
Premier shares were up more than 7%.
Meanwhile, shares in 15% equity holder in the block Nautical Petroleum rose 5%, while Cairn Energy, which has a 15% interest through subsidiary Agora Oil and Gas, saw its shares ahead more than 4%.
The other shareholder is Germany’s Wintershall, with 20%.
Steve Jenkins, Nautical’s chief executive, said: “The Carnaby well has discovered another excellent Tay reservoir in the Catcher block.”
Other finds on the block include Varadero and Burgman.
Nautical has previously said a field development plan for Catcher, which it estimated could contain 135million barrels of oil, could be submitted before the end of this year and production could start in 2015.
Catcher is 110 miles east of Aberdeen.
The Carnaby exploration well had reached a total depth of 4,695ft.
Premier said: “A core was taken and confirmed oil in excellent quality sandstones. Pressure data and sampling indicates that the API of the oil is 24 degrees and is of similar quality to that established at the nearby Catcher discoveries.
“The oil water contact was at the shallower end of expectation; driven by the more complex geology associated with this type of footwall prospect.
“The well also encountered 51ft of Cromarty sands but these were shown to be water wet on the logs.
“The high quality data acquisition from the well will now be used to determine what contribution the Carnaby discovery will make to the overall Catcher development.
“The well will be plugged and abandoned ahead of the rig moving to drill the high-risk Coaster prospect on Block 28/10a, immediately east of the Catcher acreage.”