Shares of North Sea producer Premier Oil jumped 5% after it said it made a “significant” oil find in the Outer Moray Firth.

Premier said the discovery was made in a well at the “Bagpuss” prospect on the Halibut Horst in the Outer Moray Firth.

The well encountered 41 feet of hydrocarbon-bearing sands, in line with pre-drill estimates.

“The sands have between 25% and 33% porosity and indications are that the oil is heavy,” said Premier.

The well is now being plugged and abandoned for further analysis to be carried out.

Robin Allan, Premier’s director of exploration and North Sea, said: “The Bagpuss well has proven a significant volume of oil in place.

“We will now work with our partners to carry out a full analysis of the hydrocarbons and reservoir encountered to ascertain whether commerciality can be established.”