Australian oil and gas producer Oil Search said that it has found oil in an exploration well in the Kurdistan region of Iraq.
Production tests conducted at various depths of the Shakal-1 well flowed at 750-950 barrels per day of oil, which has an API gravity of about 35º, the company said.
Further production will be required to determine stabilised flow rates and the extent of the reservoir.
The company also said that preliminary tests suggest complexity in the reservoir's geology.
Shares in Oil Search, which rose $820m on Monday, shed 2.7% to A$6.13 a barrel, compared with a broader index down 0.53%, reported Reuters.
Oil Search holds a 15% stake in the Shakal field, which is operated by the privately owned Shakal Production.