Pan Pacific to abandon well

Pan Pacific Petroleum said the Lolotoe-1 well in the Timor Sea found no commercial quantities of hydrocarbons and will be abandoned. The shares dropped 4.2%.

Pan Pacific has a 15% interest in the JPDA 06-103 contract area and Lolotoe-1 is in the southern part of the permit. Operator Oilex, which has a 10% interest, said the log evaluation showed shows in the Elang/Plover Formation sandstones and Flamingo Formation weren’t commercial.

The nearby Lore-1 well was abandoned in December for the same reason.

The Songa Mercur drilling rig will be demobilised to Singapore once well operations have been completed, it said. The prospect was targeting a prospective oil resource of 90 million barrels.

Pan Pacific has farmed in to offshore prospects using revenue from its share of the Tui oilfield. It also has interests in Vietnam and is probing the extent of Tui.The JPDA 06-103 permit has over 20 further prospects with the potential to host significant oil reserves, the company said.

Shares of Pan Pacific declined 2 cents to 46 cents when they resumed trading on the NZX today, having been halted for the announcement. The stock is down 7.5% so far this month.

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.