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Explorer New Zealand Oil and Gas (NZOG) went into a brief trading halt yesterday, before saying its share price had been affected by an earlier geologist's report on its Matuku, offshore Taranaki prospect being drilled by the rig Kan Tan IV.
Its shares went on an hour-long trading halt yesterday, before the company announced it believed its shares were adversely affected by the geologist's report released on Tuesday. The report had said '' ... sands were found to be porous, but there were no significant gas or oil shows''.
NZOG's share price had slumped more than 7%, from 81c on Tuesday to 60c yesterday.
''Until drilling is complete and testing analysed, geologists have not formed a complete view about the well or the implications for the play type in the Kahurangi trough, which was thought to be a source kitchen for a success case at Matuku,'' NZOG chief executive Andrew Knight said in a statement yesterday.
He said ''most wells will not make commercial discoveries of oil and gas''.
The Matuku well, in 130m of water, was yesterday at a drill depth of 4307m and drilling was continuing towards the target depth of 4750m.
New Zealand Oil and Gas is involved in drilling in the Tui permit at Pateke and Oi, and next summer at the Kaheru prospect, off south Taranaki.