(Alliance News) - Falcon Oil & Gas Ltd on Tuesday said it has paused operations at the Kyalla 117 well as production could not be sustained, with evidence of a potential downhole flow restriction.
Shares were down 15% to 5.15 pence in London on Tuesday afternoon. They have dropped 43% so far in 2021.
The company had started up the shale well in Northern Territory, Australia - operated as a joint venture with Origin Energy Ltd - last month. But it was only able to flow without assistance intermittently.
"Operations will now be temporarily paused while the cause of the restriction is investigated, the results of which will inform the development of a new go-forward plan for Kyalla 117," Falcon said.
"In the meantime, the JV’s focus will continue on other elements of the work programme. The JV remains on track to drill the Velkerri 76 well and commence a further extended production test at Amungee NW 1H in the coming weeks."
By Ivan Edwards; ivanedwards@alliancenews.com
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Falcon Oil (FOG)