Heritage Oil has been hit by delays to its operations in the Kurdistan Region of Iraq, as it has been forced to create a sidetrack well on its Miran West-3 well.
The well found no measurable flow of hydrocarbons at the Lower Cretaceous level although Heritage believes that existing data and observations made during the dig confirm the area is gas bearing.
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
Tony Buckingham, Heritage's Chief Executive Officer, said: "The degree of fracturing and high pressure encountered in these deeper intervals have meant that the drilling programme is taking longer than expected".
Delays are one of the main destroyers of value in the oil and gas sector, as Heritage found out in the aftermath of the announcement; by 08:47 the stock was down 2.7%. Over the last 12 months Heritage Oil shares have fallen 37%.
BS
-
Inflation holds steady at 3.8% ahead of BoE meetingThe rate of inflation did not rise in August, but the Bank of England is still expected to keep interest rates on hold tomorrow
-
Thousands of savers with £250k pensions take cash over tax-free money and IHT fearsWith a record £70 billion withdrawn from pensions in the year to March, experts are concerned savers are making knee-jerk decisions without advice that could affect their long term wealth
