Afren Plc (AFR), a U.K. energy explorer in Africa and Iraq, rose to a two-year high in London trading after finding more oil off Nigeria than previously forecast.
Afren climbed as much as 13 percent to 168 pence, the highest intraday price since July 2011. The stock traded at 159.6 pence as of 8:52 a.m. local time.
The company raised its estimate of recoverable oil at the Ogo prospect, drilled with Optimum Petroleum Development Ltd. and Lekoil Ltd. (LEK), to 774 million barrels from 202 million barrels, Bloomberg reports.
Nigeria, Africa’s biggest oil-producing nation, accounts for most of Afren’s sales, providing it with cash to invest elsewhere including in South Africa and Kurdistan.
“Based on the well data, the partners have identified volumes in excess of our pre-drill estimates,” Chief Executive Officer Osman Shahenshah said today in a statement. Drilling at the prospect has now been suspended.
Afren, which said last month that 2013 production will be at the upper end of its forecast, has gained 22 percent this year in London.