Shares in the oil and gas exploration company Dana Petroleum rose in value by three per cent as it announced news of a "significant" gas discovery off the coast of Egypt.

At present, the Scottish firm produces around 11,000 barrels of oil a day in the West El Burullus area, in which it holds a 50 per cent share.

This new discovery, made in partnership with Gaz de France which also owns a 50 per cent stake in the Egyptian underwater field, looks likely to significantly increase production capabilities, with both companies confirming that they are planning on capping the new source for the future.

Commenting on the news, Tom Cross, chief executive of Aberdeen-based Dana, said: "Making a discovery with our first well highlights the outstanding exploration potential of West El Burullus and significantly increases the likelihood of success for additional prospects which are being identified."

This latest discovery is Dana's fifth in the region this year alone, with the company having also just recently tied up a deal to acquire a 40 per cent stake in a new exploration block in the Gulf of Suez.