Brunei Shell Petroleum (BSP) - a joint venture between the Brunei government and Shell - said the new discovery further boosted prospects for the mature Seria field that had been in production since 1929.
Two more wells would be drilled this year in the North Flank, which was estimated to contain total recoverable reserves of up to 100 million barrels of oil, with a further five scheduled for 2006.
BSP managing director Grahame Henderson said oil and associated gas were found in about 140m of sands with good reservoir quality and that the group was evaluating the options for production to maximise commercial opportunities.
He described the latest find as an exciting and important discovery, representing a new milestone in the history of the mature Seria field.
The first North Flank find was made last September in the same area but in a different structure. An Asia-Pacific oil and gas newsletter last October said there were up to 20 similar structures in the area with the potential to hold up to 100 million barrels of oil.
