Shares in oil and gas explorer Austin exploration rose five per cent amid heavy volumes on Tuesday after the US-based company announced it had made two significant discoveries.
Austin confirmed its teams had made oil and gas discoveries at two oil properties in Colorado and Texas.
The discoveries appeared "consistent with the experience of nearby established fields and company expectations", the company said.
Austin also overcame significant engineering challenges created by complex geology.
Shares in the company closed 0.1 cents, or five per cent, higher at 2.1 cents with almost 106 million shares changing hands.
Chairman Richard Cottee said he was pleased with solid turnover, which would help the company's share price growth.
"We were able to get those results with only spending half the money we raised in March of this year, so the company is cashed up and able to complete its program and achieve its objectives on the June 30," Mr Cottee told AAP.
"Hopefully we'll, therefore from the results of this drilling, be self-sustaining."
Austin Exploration raised $25 million in March from investors.
Mr Cottee said the results were better than those at similar wells and that the recent drilling success kept the company on course to achieving a major increase in ground reserves.
Austin has set itself a 100-day timeline to understand whether the geological result would lead to the company becoming self sustaining financially.
Mr Cottee said Austin had been a great beneficiary of the softening oil price.
He remains committed to predictions that oil prices be in the range of $US80 ($A77.48) to $US120 ($A116.22) a barrell by 2014 and gas prices will be in the range of $US4 ($A3.87) to $US6 ($A5.81) a gigajoule.
"It's more than enough to make money," Mr Cottee said.
"Below that the unconventionals start to dissipate and there'll be a shock again."
The company will continue with a horizontal-drilling program in Colorado.
AKK Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
