Shares in Aim-listed oil and gas explorer UK Oil & Gas (Ukog) jumped almost 60 per cent in afternoon trading after it announced it had struck oil at its Broadford Bridge site in the Weald Basin.
Shares in the company jumped 59.57 per cent to 1.88p after it announced it had observed mobile light oil seeping from rock samples at the well, which it 100 per cent owns.
"I am privileged and excited to have seen, smelt and touched the oil in the KL4 [Kimmeridge Limestone] samples today, alongside Ukog's management and operations team. This is a significant and positive result at such an early stage in the well," said Stephen Sanderson, Ukog's executive chairman.
He added that the find at the Broadford Bridge well, dubbed BB-1, could suggest the oil deposit is linked to the company's well at Horse Hill, near Gatwick Airport.
"While this is still early days, the presence of mobile oil within a Kimmeridge geological feature that has no structural oil trapping configuration, demonstrates that both BB-1 and Horse Hill-1 could be part of the same Kimmeridge continuous oil deposit. This oil deposit may therefore extend over 30 km from north to south across the Weald Basin."