Shares in Dana Petroleum jumped 6% yesterday after the oil and gas independent announced its second oil discovery in the Northern North Sea in the space of three weeks.

Aberdeen-based Dana said the East Rinnes well had encountered high-quality crude close to where the firm made a significant find with the West Rinnes well last month, underlining the exploration potential of the mature province.

The latest share price rise was relatively modest compared with the 17% increase in Dana's stock after the firm announced the West Rinnes find. This may reflect the fact that whereas Dana announced strong flow rates for West Rinnes, it did not give any details for the East Rinnes find.

However, Dana said given the similarities between the two finds, directors had not felt it necessary to complete the drill stem testing required to assess flow rates on East Rinnes.

Experts will study the data accumulated on the two finds with a view to coming up with an estimate of the reserves they might contain and a plan for future drilling.

In a stock exchange announcement, chief executive Tom Cross said the latest find increases hopes that Dana may have found enough oil in the Rinnes area to form the basis of a substantial new development.

As the finds lie close to the producing Hudson oil field operated by the company, Dana would hope to be able to bring these into production relatively quickly and affordably.

"Finding a second oil field in the Rinnes area is an important and valuable result for Dana," said Cross. "The discoveries should significantly increase the probability of success for a number of Dana's other prospects in the immediate vicinity."

The shares rose 103p to 1883p.

Separately, Shell, which last month confirmed plans to shed around 300 jobs in Aberdeen over the next three years, said it had started production from the Shamrock gas field in the Southern North Sea. The field is expected to produce around 120 million cubic feet gas daily using a Monotower platform. These are powered by wind and solar energy, and cost less to build than a traditional offshore platform.