LONDON (ShareCast) - New World Oil and Gas (Other OTC: NOILF - news) plunged Friday after the company plugged and abandoned its Blue Creek #2A ST (BSE: STCORP.BO - news) oil well in the Petén Basin in north-west Belize.
Shares in the oil and gas exploration firm tumbled 45.31% to 4.38p at 8:23 as the group determined an insufficient quantity of moveable hydrocarbons at the well.
The group drilled to a measured depth of 11,650 feet before deciding it was not feasible to continue with a casing and well testing operation.
Core samples from the site were analysed along with other data. It was concluded that an active hydrocarbon system existed, and live oil shows were measure in the Y3 and Hillbank formations.
However, the company said it believed the targeted trap was likely breeched as a result of tectonic activity.
New World will now prepare for drilling at its next well, the Rio Bravo Well, in West Gallon Jug in Belize. Drilling is set to commence in the first quarter this year to a depth of 8,400 feet.
"Our operations team have done a tremendous job on the vertical and deviated wells and many obstacles were overcome and much valuable information was acquired that will now be applied to our next well," Chief Executive Officer, William Kelleher, said.
"I remain confident that we are on course to build a significant oil and gas exploration and production company and in the process create value for all shareholders."