Arc, half-owner and operator of the field, said production rates at Hovea are now at 3,500 barrels of oil per day with further increases planned to bring production rate to the target of 5,000 bopd. Total production from Hovea through test facilities now stands at in excess of 250,000 barrels.

Arc managing director Eric Streitberg said the transformation of a greenfields site into a production facility in less than six months was a credit to everyone involved. "We are delighted to be able to report that our development of the Hovea discovery is producing tangible results in record time," Streitberg said.

"Combined with the positive results of the offshore appraisal drilling program at Cliff Head, the company has now established a solid platform for future growth."

Despite the positive result, Arc is trading at 48.5c, down 1.5c.