Anadarko Petroleum has discovered oil in Mozambique but is carrying out further investigations to ascertain if it is a commercial discovery.

Shares in Cove Energy, Anadarko's minority partner on the exploration block off the coast of Mozambique, jumped 14%.

London-based Cove was waiting for more detailed analysis at the Ironclad prospect, in which it has a 8.5% stake.

Mozambique’s mineral resources minister Esperanca Bias said oil deposits were found in wells with depth of around 5,100 meters, adding that researchers are still carrying out evaluations to confirm samples from three other Rovuma Basin wells.

The Rovuma Delta covers 60,000 square km in the South Eastern African country's northern Nampula and Cabo Delgado regions.

In February, Anadarko made a gas discovery at its Windjammer prospect, in the same exploration block, which analysts said could contain gas reserves in excess of 4-trillion cubic feet (TCF).

Source: ABN digital