7th Jul 2014 09:49
LONDON (Alliance News) - Dragon Oil PLC Monday said its partner in a prospective gas license offshore the Philippines had decided to plug and abandon an exploration well at the site after failing to find enough gas to warrant further testing.
In a statement, the company said Nido Petroleum Philippines Ltd, its partner on Service Contract 63 in the north-west Palawan Basin, offshore the Philippines, had drilled the Baragatan-1A well down to a depth of 2,681 meters and hit the reservoir it was targeting. However, the reservoir units contain low gas saturations which did not warrant further evaluation or testing.
Dragon Oil has a 40% interest in the license.
"The exploration drilling in the Philippines did not discover commercial hydrocarbons. While with this well we fulfilled our work obligation, we aim to integrate the information provided by the Barragatan-1A well into the regional geological picture and assess our future interest in the block," Dragon Oil Chief Executive Abdul Jaleel Al Khalifa said in a statement.
Dragon Oil shares were down 0.6% at 592.45 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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