Exploration and development firm 3Legs Resources saw its share price tumble after the firm disappointed investors with its latest drilling update.
The firm's Warblino LE-1H2 horizontal well has been shut in for an "extended period" of several months to allow it to recover from the fracture stimulation applied in recent weeks. The shut it will also enable the fracture treatment fluid, potentially obstructing the flow of natural gas, to dissipate.
The well initially flowed at over 1,000 barrels per day (bpd) but this fell to 300 bpd after five days.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Further production testing has been proposed for spring 2012, when weather conditions are more favourable.
Chief executive Peter Clutterbuck said: "We have now concluded our 2011 drilling and testing programme for the Baltic Basin, which has achieved its objectives of completing two wells with horizontal sections and multistage fracs.
"Although flow rates have been low, we expect to be able to further improve well productivity, as is often the case in other shale plays in the US at this stage of appraisal.
"Our primary focus now is on developing improvements in hydraulic fracture and completion design which will further enhance well production rates, in addition to considering the acquisition of new 2D and 3D seismic and the drilling of a number of new wells in the near term."
The share price fell 33.82% to 90p by 14:09.
NR
-
ScottishPower launches half-price electricity at weekendsNews ScottishPower is offering 50% off electricity at weekends, which could slash hundreds off your bill. We look at who can get it and how to apply
-
Trump calls “tariff” the “most beautiful word in the dictionary”, but investors may disagreeDonald Trump has promised to slap Mexico, Canada and China with new tariffs on day one of his presidency. What does it mean for the economy and investors?
