Petro Matad’s exploration of Red Deer 1 well fails
8 сар, 1 долоо хоног өмнө
Petro Matad Ltd., listed on the London Stock Exchange (LME) reported that Red Deer 1 exploration well has failed to find hydrocarbons. The company’s share price fell about 30 percent after the announcement.
The well was drilled down to 2,000 meters and no hydrocarbon bearing zones were identified. Red Deer 1 will now be plugged and abandoned. The drilling costed less than USD 4 million, the company said in a statement.
It did encounter the primary reservoir target, the Lower Tsagaantsav, slightly shallower than anticipated but no oil shows were present. Similarly, it observed indicators of potential source rocks but it was concluded that they were not mature in the vicinity of Red Deer.
“While the results of the Red Deer-1 well are disappointing, it was the first well to be drilled in any of the basins located in the south of Block XX and it, therefore, carried a lower chance of success than the wells in the north,” said Mike Buck, the Chief Executive of Petro Matad.