Oil and gas producer Cooper Energy has confirmed a new oil discovery at its Butlers-1 well in the Cooper Basin in South Australia.

The company said today a wireline logging program showed an oil column of about 4.5 metres in the Namur Formation.

"The logs show that the reservoir appears to be high quality and the intersected oil column height is similar to the pre-drill estimates," the company said in a statement.

Cooper said it was reviewing estimates of recoverable oil volumes.

"The well will be cased and suspended as a future oil producer and will most likely be tied into the production system through the nearby Perlubie and Parsons oil fields," the company said.

Cooper Energy shares were up 2.5 cents, or 5.62 per cent, to 47 cents at 11.15am.

STUART McKINNON