8th Apr 2014 09:08
LONDON (Alliance News) - Sterling Energy PLC Tuesday said its Bamboo-1 well at the Ntem Concession, offshore Cameroon, reached total depth and failed to find commercial levels of oil and gas.
The oil and gas exploration and production company said the Bamboo-1 well, the first to be drilled on the site, reached a total depth of 4,747 metres and, after analysis of the data, the well found no commercial hydrocarbons and was plugged and abandoned.
The well was designed to target a series of stacked targets, with the main target being the Bamboo fan region.
The primary objective at the Bamboo-1 well was previously estimated to have a mean un-risked, gross prospective resource of 450 million barrels of oil equivalent.
The company said the data will now be used to update the remaining prospectivity of the large deep-water block that covers 2,319 kilometres squared.
Sterling's current phase at the concession runs until April 2015 and has the option to extend the exploration term by a further two years.
'Bamboo-1 was the first well in a large unexplored area," Acting Chief Executive Alastair Beardsall said in a statement. "We have identified further Cretaceous and Tertiary prospects in the Ntem block and these will be re-evaluated with the significant new data from Bamboo-1 before determining our future plan for the Ntem block."
Sterling Energy shares were down 23% to 34.75 pence, making it the biggest faller on AIM.
By Tom McIvor; [email protected]; @TomMcIvor1
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