Sharecast.com
Gulfsands Petroleum has failed to find viable gas reserves in a couple of wells in Morocco, sending its shares down.
Gulfsands, which works in Syria, Morocco, Tunisia, Colombia and the US, said it had found gas in the first two wells of a first phase of four being drilled on its Rharb Centre Permit, but the quantities in each were too low to be commercially viable.
Both wells were plugged and abandoned, but Gulfsands said the second of the wells contained deeper sands which are attractive reservoir targets for future exploration.
The group now plans to drill the next well in the first phase, after which it plans to drill five wells as part of a second phase in the first half of 2014.
Chief Executive Mahdi Sajjad said: “With the steep learning curve involved in drilling these wells now behind us and 3D seismic data soon to be available for locating the wells in the rest of our commitment well programme, we’re optimistic about prospects of building a successful commercial gas sales business in Morocco.”
Shares fell 6.25p to 52.75p at midday in London.
PW
