The Beach Energy Ltd (ASX: BPT) share price closed about 7.7% higher on Wednesday as the oil and gas company announced it had made a new gas discovery.
Beach's share price took a hit earlier in the week as it suffered a broker downgrade.
But the energy producer's share price rebounded on Wednesday to close at $1.05, the highest it's been since mid-2015.
Beach's share price rise could have been influenced by an announcement made to the ASX.
Beach said analysis of test results confirms Lowry‐1 as a new discovery which is not connected to nearby producing fields.
"The discovery has provided further validation for the approved expansion of the Middleton gas facility," the energy producer stated.
Beach also announced that "drilling success" had confirmed extension of its Brownlow Field.
And The Australian newspaper, owned by News Corp (ASX: NWS), was reporting on Wednesday that Beach had sold its stake in Cooper Energy (ASX: COE).
But it's likely Beach's share price was also influenced by the increasing price of oil.
Brent crude futures pushed towards their highest price since mid-2015, as with Beach's share price.
The spike in the oil price was attributed to OPEC sticking to plans to reduce supply.
It's also understood that an agreement between Russia and OPEC to restrict supply has had an impact on the price of oil.
And it seems the deal to limit oil supply will continue into 2018, according to Reuters.
Other oil and gas companies also saw gains on Wednesday's trade.
The Woodside Petroleum Limited (ASX: WPL) share price was up by 1.24% to close at $31.11.
And the Santos Ltd (ASX: STO) share price was up by 1.78% to finish the day at $4.58.
But the Oil Search Limited (ASX: OSH) share price bucked the general trend in the sector. It dropped 3% to close at $7.16.
Brent crude futures pushed past US$61 overnight before moving slightly down.
