(Alliance News) - Advance Energy PLC shares tumbled after it announced on Monday that its Buffalo-10 well in Timor-Leste had only found "residual oil".
The Isle of Man-based upstream oil and gas firm said the well will be plugged and abandoned, and the rig will be demobilised. Advance Energy owns a 51% interest in the project.
Its share price sunk by 58% to 0.24 pence in London on Monday morning. In 2022, the share price has fallen by 94%.
"The results of B-10 are both disappointing and hugely surprising given the independently verified risk assessment which confirmed a highly likely commercial outcome from the well," said Leslie Peterkin, Advance's chief executive officer.
Peterkin said the well was likely drilled into the hanging wall of a fault, and the joint venture will conduct further technical analysis in the coming weeks.
"We believe it is likely that the JV will relinquish the Buffalo asset as neither company wishes to fund a second appraisal well in the field," Peterkin added.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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