Shares of Oilexco Incorporated (TSX:T.OIL, Stock Forum) were up slightly Monday to $16.87, a gain of 5.6%, after the company announced that through its wholly owned subsidiary Oilexco North Sea Limited, it has successfully flow tested gas-condensate at significant rates from its Moth discovery.

Oilexco confirmed a significant dual zone oil and gas-condensate discovery at Moth late last month, located in Block 23/21 in the UK Central North Sea.

The company reports that the 23/21-6z Moth discovery well was drilled to a total depth of 14,616 feet. The test flowed gas at an average rate of 20.3 Mmcf/d with 2,110 Bbls/d of condensate through a 36/64 inch choke with a flowing tubing pressure of 4,478 psi during the main flow period, says the company’s news release. The maximum flow rate achieved during the test was 24.4 Mmcf/d and 2,460 Bbls/d of condensate.

Calculations of surface absolute open flow suggest that the Moth well could be capable of 44 Mmcf/d and 4,400 Bbls/d of condensate or 11,800 barrels of oil equivalent per day with a properly sized production string, says Oilexco.

"We are very pleased with the results of the Moth well, which has the potential to become a significant producing asset for the Company" said Arthur Millholland, President and CEO of Oilexco. "Oilexco will now evaluate the timing of additional appraisal of the Moth structure and development options in the near future with our co-venturers.”

On the Bullboard Monday, bfw said “Yeah...I added to my position on the news. This will probably be over $17 tomorrow [sic].”

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