viewAfrica Oil Corp

Africa Oil retreats as Kenya well abandoned


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."

Quick facts: Africa Oil Corp

Price: - -

Market: TSX-V
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: Immotion plans fundraising following deal with Las Vegas resort

Immotion Group (LON:IMMO) has raised gross proceeds of £2.85mln from an 'oversubscribed' fundraising to accelerate its growth plans, and revealed it has inked a revenue-sharing deal with the MGM Mandalay Bay resort and casino in Las Vegas. CEO Martin Higginson tells Proactive London what the...

2 days, 15 hours ago

2 min read