Golden Gate Petroleum may have hit a drilling bullseye

Golden Gate's stock leapt 10 cents, or 33.33 per cent, to close at 40 cents.

"During drilling operations, signficant amounts of light oil were observed in the mud pits and highly elevated gas readings were recorded," the company said.

"While this information is preliminary, it does provide a strong indication of a commercial discovery.

"Expectations should be tempered based on the information to date as it needs further confirmation."

"The company remains cautious until a full evaluation can be completed."