LONDON, April 3 (Reuters) – Oil and gas explorer Northern Petroleum said it planned to increase exploration at its Canadian operations on Thursday after all three of its concept wells in the region proved successful.
The London-listed company said it discovered economically recoverable light oil around the Keg River formation in northwest Alberta, and long-term production testing was already under way.
It has also bought an additional four plots of land to raise its position to 26,454 acres from 9,320 acres in the region.
"Canada represents the first step towards the realisation of our strategy of production led growth and it has the potential to be a material source of production, cashflow and value creation to the business," Chief Executive Keith Bush said in a statement.
Northern Petroleum has undergone a major overhaul of its production strategy and revamped its management team after a series of disappointments which have led to a 51 percent fall in its shares over the past year.
The stock was up 7.9 percent to 24.35 pence at 0814 GMT, making it one of the biggest gainers on the London Stock Exchange.
"We see this as a positive update from Northern Petroleum on its operations in Canada," said Jamal Orazbayeva, analyst at Westhouse Securities.
"Other encouraging news is that it has increased its land position and hence, its estimated oil in place."
(Reporting by Li-mei Hoang; editing by Jason Neely)
Copyright 2016 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you