Reabold Resources has struck oil for the second time in as many weeks, it said this morning, as a US well showed promising results.
The operator at the Monroe Swell field, where Reabold owns half the rights, said it had found oil at the California site.
Battling poor weather the drillers managed to find more oil than the company had projected at around 900 metres depth.
Co-chief executive of London-listed Reabold, Sachin Oza, told City A.M: “This well was a really important milestone for our California portfolio and with it we have seen a significantly greater oil column than previously expected at Monroe Swell. We look forward to the testing this well and the drilling of the next well.
“The low capital and operating cost per well in California will deliver an excellent economic return for Reabold.”
Shares closed up nearly nine per cent to 0.62p.