10th Feb 2015 08:17
LONDON (Alliance News) - Shares in Northern Petroleum were lower on Tuesday morning after the company said it has suspended work on well at its Keg River project in Canada.
The company said it has suspended work on Well 102/11-30 at the site. The drilling in the lower zone was water wet and while the upper zone produced oil, the water cut was too high to be economic within the current oil price environment, it said.
It also said its Well 102/15-23 was producing intermittently in January and it is now installing a pump to establish stable production.
"This well result means that we will need to re-evaluate our understanding of drainage in the Keg River reefs. However, the well has confirmed our seismic interpretation at the reef edge which is an important step forward in the overall development," said Northern Petroleum Chief Executive Officer Keith Bush.
Shares in Northern Petroleum were down 16% to 8 pence in early trade, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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