New Zealand Oil and Gas shares dropped slightly this morning after only traces of hydrocarbons were found in the first of its four-well summer drilling program.
The company (NZX: NZO), which began drilling the Albacore-1 well using the ENSCO-107 jack up rig on December 5, this morning announced the well was not commercial.
Forsyth Barr analyst Andrew Harvey-Green said he expected the share price would continue to drop, but bounce back slightly later today, but any more than a 10 cent drop would be an over reaction.
Interest in the company over the last month was due to a combination of factors, including the summer drilling programme, he said.
The well, 70km north of New Plymouth in the northern offshore Taranaki basin, will be plugged and abandoned after drilling reached a depth of 2133 metres on Sunday.
The ENSCO-107 will now return to Singapore.
New Zealand Oil and Gas (through its subsidiary, NZOG Offshore Ltd), has a 40% stake in the Albacore permit, along with operator Westech (50%) and Mighty River Power Gas Investments (10%).
Other scheduled wells include the exploration well, Hoki, and two appraisal wells near the Tui oil field.
The Kan Tan IV semi-submersible rig will drill the Tui wells and is expected to arrive in the country in late January.
Shares dropped from $1.72 to $1.66 early this morning.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Auckland Council ignores free funding advice, chooses to spend $500k
- Ralph Norris spells out reasons for Fonterra board departure
- Dimension Data restructures, top salesman leaves
- China pips Oz as NZ's top annual export destination
Most listened to
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories
- Trilogy International CEO Angela Buglass reviews another bumper result
- Eroad CEO Steven Newman talks about his company's revenue increase
- What do the latest terrorism attacks in Mali and Israel mean? Nathan Smith discusses the latest foreign affairs news
- NZ Windfarms departing director Michael Stiassny speaks out after board exit
- James Mayo talks about SOS Hydration's growth plans after Snowball offer