Deltic Energy PLC shares climbed on Wednesday, after it said gas has been found at the 41/05a-2 Pensacola exploration well on Licence P2252, located in the southern North Sea.

Shares in the London-based natural resources investing company jumped 46% to 2.89 pence each in London on Wednesday around midday.

Shell PLC is operator of the asset, owning a 65% share. Deltic owns 30% and the rest is owned by Dutch exploration firm ONE-Dyas.

Deltic said that gas has been reported in the reservoir, and Shell has recommended to the joint venture that a full well testing programme be undertaken.

The company noted that the joint venture has endorsed Shell’s recommendation to undertake a full well test to evaluate the commerciality of the Pensacola prospect and update the geological model. It expects the well testing to take around 30 days.

Chief Executive Graham Swindells said: ‘We are very pleased to have encountered hydrocarbons in the Pensacola exploration well at this intermediate stage of well operations. We now look forward to working with the operator on the well testing programme, and will update the market once that programme is completed.’

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