Predator Oil & Gas Holdings PLC (LSE:PRD) shares plummeted more than 30% in Friday’s early trade after the firm reported a well update that disappointed.
The MOU-3 well, in Morocco, was perforated using larger perforating guns for the first time, and a nitrogen lift recovered samples.
The initial analysis provided the team that the reservoir had been successfully perforated. And, the well is now shut in to assess the potential for clean-up and pressure build-up.
But, Predator said that the well is now shut in to assess the potential for clean-up and pressure build-up. The current buildup is being monitored to see whether, in time, the damage can be overcome.
Looking further ahead, now, the company said it is planning a new well (MOU-6), with a new design, to mitigate for formation damage.
That new well will be crucial for evaluating potential well productivity and reservoir performance at several levels, the company said.
“We will seek to execute the MOU-6 drilling programme at the earliest opportunity this year in order to maintain momentum,” Predator chief executive Paul Griffiths said in a statement.
In London, Predator shares were down around 33% changing hands at around 3.66p.