Jubilant Energy (LON:JUB) shares surged five per cent in early deals after it announced it was awarded "highly prospective" acreage in the Republic of The Union of Myanmar and that it had spudded a well in India.
The production sharing contract for the block (PSC-1) was awarded today at Nay Pyi Taw between the company, Parami and Myanma Oil & Gas Enterprise (MOGE) - an enterprise formed by the Myamar government.
The company holds a 77.5 per cent participating interest in the block and will be the operator, while Parami holds the remaining 22.5 per cent participating interest.
Chief executive Ajay Khandelwal said: "We are delighted to be the first company on the London Market to be awarded this highly prospective acreage in the Central Burma basin of Myanmar and further emphasises our commitment to build an exciting portfolio of assets in proven and prolific hydrocarbon basins.
He noted that the Central Burma basin of Myanmar was rich in oil and gas resources with discoveries and production dating back to 1887.
In a separate statement, the company revealed the Matabari-1 exploration well in the southern part of the Tripura block in India begun on May 25.
The planned depth is 4,070 metres and the well is estimated to take around four months to drill.
It lies 3.3 km east-southeast and up-dip from the phase-1 exploratory well Kathalchari-1 and 5.5 km to the southeast and up-dip of the second phase-I appraisal well KL-NE.
Jubilant holds a 20 per cent participating interest in this block through its subsidiary Jubilant Oil & Gas Private Limited, India which is also the operator for the block.
GAIL India Limited holds the remaining 80 per cent participating interest.
As at 11.28am, Jubilant shares were up 5.70 per cent, to trade at 25.50 pence each.