LONDON, Oct 20 (Reuters) - Oil explorer President Energy said it had made Paraguay's first substantial oil discovery in the northern Chaco region, nearly doubling the company's share price on Monday.
The London-listed energy firm said it had discovered oil nearly 4,000 metres underground, shallower than the area the explorer was actually targeting.
Its share price was up around 80 percent at 30 pence at 1033 GMT, off an earlier high of 35 pence and hovering at its highest level since mid-July.
The oil find will allow President to start producing first oil in Paraguay next year and will sell it to the domestic market, a spokesman said.
"President has demonstrated beyond doubt that movable conventional oil does exist in the Paraguayan Chaco," said President Chairman Peter Levine.
Paraguay, which has no proven oil reserves, consumes around 27,000 barrels of oil daily, less than half a percent of all of South and Central America's oil demand.
An audit of President's resources across three drilling areas in Paraguay published in January estimated there was around 1 billion barrels of oil equivalent. (Reporting by Karolin Schaps; editing by Susan Thomas)