LONDON (Alliance News) - Chariot Oil & Gas Ltd lost more than half of its market value on Thursday after drilling at its Prospect S well offshore Namibia did not encounter a hydrocarbon accumulation.
Shares in the oil & gas exploration company were trading 53% lower at 3.70 pence each as a result of the news.
Chariot said the well, which has been drilled to 4,165 metres, penetrated water-bearing stacked target reservoirs.
"Further analysis will be required to understand the implications of the well results on the prospectivity of the surrounding area," the company added.
The well, which was operated by Chariot and drilled by the Ocean Rig Poseidon drillship, will be plugged and abandoned.
Chariot owns 65% of the Central Blocks licence offshore Namibia of which Prospect S, forms part.
Chief Executive Officer Larry Bottomley said: "Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems which form the primary targets across many of the prospects within the Central Blocks portfolio."
Chariot (CHAR)