7th Dec 2022 11:00
(Alliance News) - Molecular Energies PLC on Wednesday said drilling of its exploration well in Paraguay has been delayed as approval is needed to procure the rig.
The West Yorkshire, England-based oil & gas company said the drilling date depends on the designated drilling contractor of the rig. The delay in procurement by the contractor is due to the consents and approvals needed by the current owner of the rig, whose parent is emerging from bankruptcy, Molecular Energies said.
It added that positive progress can now be made which, subject to final permissions and approvals, will allow the rig to be procured by the drilling contractor and contracted by Molecular Energies for drilling during this month.
It is now estimated that drilling will start in the latter part of the first quarter of 2023, with mobilisation commencing in the first part of the quarter.
Molecular Energies said repairs and checks on the rig are required to be made by the drilling contractor as it was stacked for a prolonged period of time. This will involve the blow out preventer being serviced.
Molecular Energies shares were down 11% to 139.59 pence each on Wednesday morning in London.
By Jaskeet Briah, Alliance News reporter
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