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- Oiler Metgasco has been hit with a 36.2 per cent discount in its shares after the company and partner Byron Energy abandoned a commercially failed oil well
- The ‘D14 BP1’ well is currently in the process of being plugged, after 14,933 feet of drilling was conducted by site operator Byron
- Metgasco management cited difficult working conditions in the wet weather as a factor in the debilitated quality of the well to produce a profit
- Shares in Metgasco closed in the market yesterday at 4.70 cents each – now trading for three cents a share while Byron underwent a 19.3 per cent share price reduction this morning.
Metgasco has plummeted 36.2 per cent this morning after the company ceased production of a well.
The company advised to shareholders this morning that business partner Byron Energy abandoned operations at well D14 BP1. The companies deemed the well to be ‘uncommercial’ after 14,933 feet of drilling.
Share prices in Metgasco closed yesterday at 4.70 cents – now trading for only three cents a piece. Meanwhile, Byron Energy’s shares are trading at 23 cents a piece, a reduction of 19.3 per cent.
“Clearly this result is very disappointing for Metgasco and Byron,” spoke Metgasco CEO Ken Aitken.
The well is currently being plugged and officially abandoned. Metgasco’s management stated working conditions at the well were tough, forcing workers to operate through wet weather.
Ken expressed gratitude for Byron’s performance as an operator and for dealing with the difficult challenges.
Real-time gamma ray technology was used to survey the well as a commercial failure. The company recognised the presence of thick high-quality wet sands, proving for a difficult operation, if continued.
Metgasco’s board will undertake a corporate review of operations to maximise shareholder returns during this setback.
The process of abandoning the well will continue into next week. Metgasco is planning to issue a final progress report on the well in the near future.
Metgasco’s market cap is valued at $18.35 million. Byron Energy’s market cap is currently valued for $198.1 million.
