Hurricane Energy has described its Halifax field as the “largest undeveloped” oil find so far in the UK's waters.
The company's shares close up 8.76 per cent at 59p, up from a closing price of 54.25p per share on Friday.
An analysis of the Halifax well found a column of oil-bearing rock of at least 1,156m, which was described as “very significant”.
Around 60 miles west of Shetland, production is expected to start in the first half of 2019.
Hurricane needs to find several hundred million dollars to develop production and this could be through equity fundraising, debt fundraising or a partnership agreement with an oil major - or a combination of these.
“This is a highly significant moment for Hurricane,” said chief executive Dr Robert Trice. “I am delighted that the Halifax Well results support the company’s view that its substantial Lancaster discovery has been extended to include the Halifax licence. We believe that the Greater Lancaster Area is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.”