Shares in Linc Energy climbed as much as 21 per cent today, making the stock the best performer of the day on the S&P/ASX200 Index, after the company said drilling in the shallow waters of Galveston Bay, southeast of Houston, Texas, had yielded oil and gas.
In an ASX statement Linc says one well was producing 1000 barrels of oil equivalent a day and 3.6 million cubic feet of gas a day in the 2-3m waters of its Cedar Point field, first discovered in 1938 by Standard Oil Company of Texas.
The historical average accumulative production per well at Cedar Point has been 600,000 barrels of oil equivalent, the ASX statement says. Linc is currently drilling two more wells at Cedar Point.
Peter Bond, Linc’s chief executive, says the Cedar Point drill results mean less spending by the company on the Gulf Coast while it plans to increase production. “We have doubled production and look forward to further growth as we exploit our significant acreage position in the Gulf Coast,” says Bond in the ASX statement.
At 1504 AEST Linc Energy shares were up 27.25 cents, or 20 per cent, to $1.6475, after rising as high as $1.67 earlier. The share price has surged 166 per cent in the last 12 months, the fifth best performing stock on the S&P/ASX200 Index, according to Bloomberg data.