Advance Energy PLC (AIM:ADV)’s Buffalo-10 well intersected its primary target, the Elang reservoir, with early data indicating hydrocarbons are present.
The top Elang reservoir was intersected at a depth of 3,338 metres – which project operator Carnarvon Petroleum described as “approximately 80 metres low to prognosis and outside the pre-drill range of expectations.”
Carnarvon, in a statement relayed by Advance Energy, said interpretation of early results determine that a 12 metre gross oil column was encountered. Wireline logging will now be used to determine the reservoir properties and to confirm a net oil column.
The project operator, meanwhile, cautioned that “information to date indicates that the seismic processing techniques employed on this project have not resolved the underlying seismic velocities or imaging resolution issues that are present in this field.”
Advance Energy shares opened Wednesday’s trading with high volatility, losing more than 75% in initial prints down to 1.20p.