Petroceltic plugs and abandons Black Sea exploration well

Shares in AIM-listed oil and gas group Petroceltic International were under pressure on Friday morning with the company mulling an extension of a licence contract after having to abandon one of its exploration wells in the Black Sea.

Shares in AIM-listed oil and gas group Petroceltic International were under pressure on Friday morning with the company mulling an extension of a licence contract after having to abandon one of its exploration wells in the Black Sea.

The Kamchia-1 well offshore Bulgaria was drilled to a total depth of 2,887 feet but encountered 56 feet of carbonate sands with "sub-commercial gas saturations".

Chief Executive Brian O'Cathain said he was "disappointed" with the outcome after the well had to be plugged and abandoned.

The firm said: "The company is currently analysing the well data with a view to updating the regional geologic model and deciding whether to enter into the final two-year extension of the exploration licence later this year."

The drilling rig is now to relocate to complete a suspended discovery well for gas production and will then move to offshore Romania this summer to "test two high potential, proven exploration plays in Est Cobalcescu and Muridava"," O'Cathain said.

The stock was down 5.11% at 636p by 08:33 on Friday morning, extending the year-to-date fall to 12.4%.

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