(Alliance News) - Longboat Energy PLC on Wednesday shared a "minor" discovery at the Velocette exploration well in Norway.
Shares in the exploration and production company, active in Norway and Malaysia, were down 14% to 19.72 pence each in London on Wednesday afternoon.
It said exploration well 6607/3-1 S has encountered hydrocarbons in the primary target in Cretaceous turbidite sands in the Nise formation.
However, the volumes at Velocette are at the lower end of pre-drill expectations, meaning the discovery is "not considered to be commercial in isolation".
The well will now be plugged and abandoned as planned.
Chief Executive Helge Hammer said: "Although we are disappointed not to have made a commercial discovery in Velocette, the presence of good quality sandstone reservoir, which was the main pre-drill risk, and the presence of gas is encouraging. There is significant follow-on potential that has been derisked with this result and we will be working with our joint venture partners to mature these opportunities further."
By Sophie Rose, Alliance News reporter
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Longboat Energy (LBE)