Africa Oil Corp. (CVE:AOI), the Canadian oil exploration company with assets in Kenya, Ethiopia and Somalia, tumbled to the lowest in three weeks after saying it has plugged and abandoned a well in Kenya.
The shares fell 8.4 percent to C$9.05 at 1:12 p.m. in Toronto, trimming this year's gains to 29.6 percent. Earlier, the shares touched 8.97, the lowest intraday price since Nov. 19.
The Bahasi well, located in Kenya Block 9, has been plugged and abandoned after being drilled to a depth of 2900 meters, encountering metamorphic basement at 2850 meters, the Vancouver-based company said in a statement today.
A thick section of Tertiary and Cretaceous interbedded sands and shales were encountered with only minor shows of gas throughout the section and the well is being plugged and abandoned, the company said.
In the South Omo block in Ethiopia, the Tutule-1 well has reached a total depth of 2101 meters, according to the statement. The well encountered a section similar to the nearby Sabisa-1 well in the upper portion of the well but the sands which appeared to be oil saturated in the Sabisa well were not present on the Tutule horst block feature with multiple volcanic units and shales in this section.
"While we are disappointed that the Bahasi and Tutule wells did not find commercial hydrocarbons," Chief Executive Officer Keith Hill said in the statement, "we look forward to aggressively pursuing other exploration opportunities in other sub-basins within these two large blocks and in the other 9 new basins yet to be drilled."