13th Aug 2014 08:45
LONDON (Alliance News) - President Energy PLC shares plunged early Wednesday after the company suspended drilling at the Jacaranda-1 well in Paraguay, despite expressing optimism that the results from the well de-risks the remaining two wells in the drilling campaign.
Shares in the company were down 26.1% to 23.75 pence on Wednesday, making it the biggest faller on the AIM All-Share index.
President said the Jacaranda-1 well had been drilled to a depth of 4,500 metres, but has now been suspended for re-entry at a later date. The well was started in June and is the first deep exploration well drilled in the Chaco region in Paraguay for almost 30 years.
President said that while the well confirmed developed reservoir-quality sand, the Carboniferous sandstone was not sealed and hydrocarbons have migrated away.
President said it will now focus on the Lapacho and Tapir prospects, saying the results from the Jacaranda well supported these projects, and said Lapacho will be its next prospect.
By Sam Unsted; [email protected]; @SamUAtAlliance
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