It certainly has been a positive day of trade for the Warrego Energy Ltd (ASX: WGO) share price.
In afternoon trade the oil and gas exploration company's shares are up a whopping 62% to 30 cents.
This latest gain means that Warrego Energy's shares are now up a massive 750% since the start of the year.
Why did the Warrego Energy share price rocket higher today?
This morning the company announced that its West Erregulla joint venture has made a significant gas discovery in the Kingia Sandstone at the West Erregulla-2 well in EP 469 in the North Perth Basin, Western Australia.
The release explains that the first of two primary targets, the Kingia Sandstone, was intersected close to prognosis at 4,753 metres Measured Depth Below Rotary Table (MDRT).
The formation was substantially thicker than anticipated, extending to a depth of 4,870 metres MDRT. A 97 metre gas column was identified, which includes a 67 metres section comprising several high-quality large units of clean sand with thick blocky porosity development and high gas saturation.
Net pay is estimated at 41 million with average porosity of 14.3% and peaks up to 19%.
Drilling is continuing at a depth of 4,895 metres MDRT, but the second primary target, the High Cliff Sandstones, has not yet been encountered.
The company's CEO and Managing Director, Dennis Donald, appeared to be understandably very pleased with this development.
He said: "This exciting discovery has exceeded our pre-drill expectations for the Kingia and substantially upgraded our view of the West Erregulla gas fields as a whole."
"The net pay of 41m is significantly thicker than analogues in the Waitsia field and underlines the potential of West Erregulla and EP469 to become an important future source of gas production in Western Australia," he added.
The project is a 50:50 joint venture with fellow oil and gas exploration company Strike Energy Ltd (ASX: STX). Unsurprisingly, its shares have surged higher as well on Tuesday. At the time of writing the Strike Energy share price is up 83% to 26.5 cents.
