News

Indago blue as drilling is terminated

15 July 2008 09:08:00

Shares in Oman-focused oil and gas exploration company Indago Petroleum wilted Tuesday morning as the company discontinued drilling operations at its 50% owned Zad well.

Drilling on the well on the Adam prospect in block 47 started on 20 May and initially progressed in a routine manner. However, the drill-string subsequently became stuck on two occasions, resulting in the loss of the bottom-hole assembly, requiring a side-track well to be drilled on each occasion.

Problems on the second side-track attempt prompted the operator of the well to conclude that drilling should not continue, due to tectonic instability.

Options for resuming drilling will be reviewed at a later date.

“The loss of the Zad well is a big disappointment but the decision to terminate early and control costs is the most appropriate option,” said David Bremner, chief executive officer of Indago.

“We still have confidence in Adam as a prospect and look forward to the opportunity to redrill later,” Bremner added.

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