Ithaca Energy (IAE) announced today that drilling in their North Sea field Stella had found more oil than expected and confirming its viability meaning the company's reserves could be increased by up to 25%.
Ithaca's chief exploration officer Nick Muir said "The field is clearly even more significant than we thought and the results of this well and the test have exceeded all our expectations,"
The company said that it now knows the reservoir has a total hydrocarbon column of more than 820 feet, confirming oil more than 500 feet lower than that found in previous wells, and establishing the reservoir as 'fill to spill', meaning connected hydrocarbons are present throughout.
Following the news it looks like Ithaca's prospects look increasingly positive, though drilling will not start until 2012. Despite the despite 10% increase today to 162p the shares still look good value.
