UK Oil and Gas confirmed operations at the Horse Hill-1 site produced oil shows during mud logging.
The discovery, which shows evidence of reservoirs with oil, was found between a measured depth (MD) of between 2,100 to 2,140 feet.
Drilling is now continuing to other primary and secondary targets within the sandstone.
Horse Hill-1 will be drilled to 8,658 feet total depth in order to test for Triassic-aged formations, which are expected to contain gas.
The well is located on the northern side of UK Weald Basin near Gatwick Airport and is planned to test a number of conventional oil and gas targets.
The primary oil reservoir targets in this well lie in the Jurassic age Portland Sandstone and the Corallian Sandstone.
There are also a number of secondary oil targets in the Jurassic formations.
The well is presently being drilled to the second of the primary targets in the Corallian Sandstone.
UK Oil and Gas owns a 20% stake in the development.