Deltic Energy PLC on Wednesday said its estimate of oil and gas resources at the Pensacola discovery on licence P2252 in the southern North Sea is ‘nearly double’ initial expectations.

Shares in Deltic were up 32% at 30.40 pence each in London on Wednesday morning.

The North Sea-focused natural resources investor said the Pensacola structure contains approximately 342 million barrels of oil equivalent, meaning Deltic now estimates a total gross P50 estimated ultimate recovery of around 99 million barrels of oil equivalent.

Also, the company said it estimates Pensacola to contain material volumes of oil, which represents around 30% of combined recoverable hydrocarbons.

Back in February, when Deltic first announced the gas discovery at Pensacola, the exploration pointed to an estimated ultimate recovery of 302 billion cubic feet.

Deltic also said it is now pursuing monetisation options for the discovery.

Chief Executive Officer Graham Swindells said: ‘This is an outstanding result for Deltic. Our success to date reinforces the quality of our technical team and the Deltic model of taking licences from award through to successful drilling.

‘We look forward to working with our joint venture partners to continue moving this exciting asset through the appraisal phase and onward towards development.’

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