The discovery of an Australian oil deposit by a US company has been labelled ‘one of the most significant developments in Australian oil and gas in recent times’.
Phoenix South, an offshore well in Western Australia’s Canning Basin, was targeting gas when it stumbled upon an alleged 300 million barrels of oil, according to American oil company Apache.
The discovery resulted in Apache shares trebling to 24 cents on Monday, seeing the small company’s market value surging by $157 million, according to a Fairfax report.
Carnarvon Petroleum managing director Adrian Cook described the Phoenix South find as “one of the most significant developments in Australian oil and gas in recent times”.
Analysts have described the reaction as overblown, with only a portion of the oil allegedly recoverable.