Shares in Heritage Oil have fallen more than 10% in the past two days following its announcement that drilling at Miran West-3 in Iraqi Kurdistan in taking longer than expected.
The company owns 75% of the block, with Genel Energy owning 25%. Shares in Genel have shed 14% since Friday's close. CEO Tony Hayward commented:
"The Miran 3 well has confirmed the presence of gas in place at this location on the Miran structure - integration of the well results and the recently completed 3D seismic survey will provide a better estimate of the potential recoverable gas reserves and assist in development planning."
The full text of the Heritage announcement follows:
Heritage Oil Plc (LSE: HOIL), an independent upstream exploration and production company, provides an update on the Miran West-3 well in the Kurdistan Region of Iraq ("Kurdistan").
- The well is currently at a depth of 2,910 metres
- Testing and the results of wireline logging confirm the Lower Cretaceous reservoir formation is gas bearing
- High pressure gas was encountered requiring a change in well design and the well being sidetracked. This high pressure interval has been drilled and is now being logged
- Drilling will continue to the Jurassic targets below 3,000 metres