Global oil and gas production company Linc Energy said on Monday it has found oil in one of its oil wells at its Umiat oil field in Alaska.
The dual-listed company in Singapore and the United States also said the well marks the first time crude oil has been surfaced in significant quantities at Umiat since 1952.
During seven days of testing, the Umiat #23H well produced a peak flow rate of 800 barrels of oil per day and a sustained flow rate of 250 barrels per day.
The well produced light sweet crude oil with a high American Petroleum Institute (API) gravity of 38.5.
Light sweet crude oil with high API gravity has a low density and contains less amounts of sulphur. These qualities make it pricier, as it produces more gasoline and diesel fuel when refined.
"The success of flowing oil from Umiat is a great milestone for Linc Energy and its team," said Mr Peter Bond, chief executive of Linc Energy. "We have now proved ... our commercial design has been a success."
Situated 300 metres below the surface, the Umiat #23H well is a 640 metre horizontal well.
Linc Energy plans to work with the state of Alaska to take the Umiat field into full commercial production towards its goal of reaching peak production of 50,000 barrels per day.
Mr Bond thanked the state of Alaska for its assistance through various tax incentives and oil development programs. He also noted that 65 per cent of the cost of development of the Umiat oil field is paid for via these programs.
Linc Energy's Umiat oil field consists of 19,358 gross acres in the North Slope Foothills of Alaska and is believed to contain over one billion barrels of oil.