Kea Petroleum share price tanks after New Zealand mine plugged and left
Oil and gas explorer Kea Petroleum’s shares plummeted over 66 per cent in one day, following an announcement that it would plug and abandon its Puka-3 well after poor results from drilling conducted at the site.
The Aim-listed company, which focuses on New Zealand and has three oil exploration permits in the Taranaki Basin of the country, said the results from the Puka-3 well were not of commercial quality, and would thus not enter production.
Chairman of Kea Ian Gowrie-Smith said: “We are disappointed with the result of the Puka-3 well. However, the data we have recovered will be used to plan development of the Puka field and allow us to devise a suitable programme moving forward.”
The company said it would make an updated reservoir assessment after the abandonment of the well.