Shares of Videocon Industries rallied 4.4 percent intraday Monday after the company discovered more reservoir intervals of light oil and gas in Brazil.

Petrobras, operator of the block SEAL-M-426 in BM-SEAL-11 concession, Brasil, has completed the formation test (assessing the potential of a petroleum deposit) of well 3-BRSA-1286-SES (ANP nomenclature) / 3-SES-186 (Petrobras nomenclature), located in the BM-SEAL-11 concession in the SEAL-M-426 block in ultra-deep waters of the Sergipe-Alagoas Basin.

"The results of the formation test confirmed the presence of light oil (37° API) and good productivity of the reservoirs. This drilling identified two reservoir intervals of light oil and gas - the top with a thickness of 44 meters, and the bottom 11 meters thick, the bottom zone being a new discovery for the area," said Videocon in its filing.

This is the third appraisal well in Farfan area, discovered in October 2012.

Pradeep N Dhoot, Dubai-based director of global E&P business of Videocon Hydrocarbon Holdings said, "The formation tests of the new Hydrocarbon accumulations at multiple plays will further add to the hydrocarbon resources already indicated in the said blocks."

Petrobras holds 60 percent participating interest in the concession and IBV Brasil holds the remaining 40 percent participating interest in the concession.

IBV Brasil is a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon and BPRL Ventures NV, a wholly owned subsidiary of Bharat Petroleum Corporation .

At 10:26 hours IST, the scrip of Videocon Industries was quoting at Rs 160.95, up Rs 3, or 1.90 percent and Bharat Petroleum Corporation increased 1.4 percent to Rs 809.10 on the BSE.