23rd Feb 2015 07:37
LONDON (Alliance News) - Premier Oil PLC on Monday said it has plugged and abandoned the Badada-1 exploration well in Kenya, though it added the well had been drilled within budget.
FTSE 250-listed Premier Oil did not provide any detail on why the well had been plugged and abandoned, but one of its partners, AIM-listed Tower Resources PLC, said the well had failed to find commercial hydrocarbons.
Premier Oil has a 55% stake in the well, with Tower holding a 15% stake and the remaining 30% held by Taipan Resources Inc, which is also the operator.
"Drilling results suggest that the section here is sandier than had been expected and the development of sealing claystones is less than had been hoped. This was always the principal risk for the play. We shall be evaluating the results of the well to assess the remaining prospectivity in this very large area," said Tower Chief Executive Officer Graeme Thomson.
By Sam Unsted; [email protected]; @SamUAtAlliance
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