(Corrects headline and first, third and fourth paragraphs to remove references to abandoning the well, adds company statement in last two paragraphs.)
March 1 (Bloomberg) -- Houston American Energy Corp., the oil producer that reported net losses for the first nine months of last year, fell the most since 2002 after reporting that it’s plugging the lower portion of a well in Colombia after tool failures.
Houston American declined 35 percent to $7 at the close in New York, the biggest drop since Nov. 26, 2002.
Houston American will seal the deeper portion of its Tamandua #1 well and instead will further evaluate formations closer to the surface, according to a statement today.
The company, based in Houston, will move the drilling rig to one of two possible locations after completing the well.
“I would like to make it clear to our investors that the Tamandua #1 well is not being abandoned,” John F. Terwilliger, chief executive officer of Houston American, said in an e-mailed statement today.
“Current ongoing operations are to make a completion attempt in the C-9 and C-7 sands,” he said. “As previously reported, the Tamandua #1 well exhibited hydrocarbon shows in the C-7 and C-9 sands, and logged approximately 200 feet of net resistive sands in the C-7 formation and approximately 140 feet of net resistive sands in the C-9 formation. We are eagerly awaiting the results from these completion attempts.”
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