Predator Oil & Gas Holdings PLC (LSE:PRD) shares fell around 35% lower in Tuesday’s early deals after it revealed that rigless testing operations in Trinidad have confirmed the presence of formation damage.
“The presence of potentially deep formation damage caused by heavy drilling mud has re-confirmed the necessity to test these zones for which the wireline logs are likely to have been impacted by the invasive drilling mud,” executive chair Paul Griffiths said in a statement.
“We are very confident that we can design the Sandjet testing parameters to extend beyond the zone of formation damage.
“The analysis of gas collected from multiple levels whilst drilling MOU-3 is encouraging as it indicates gas from a biogenic origin with up to 99.57% methane content, which is ideally suited to a CNG development.”
Griffiths added: “Planning activities to drill MOU-5 are progressing smoothly and we are encouraged by the preliminary results from the geochemical characterisation of the Jurassic section in MOU-4.
“Resources estimates remain unchanged and there are no changes to available discretionary working capital to carry out the Sandjet testing programme.”
In London, Predator shares fell 4.56p or 35% changing hands at 8.44p.