Jan. 11 (Bloomberg) -- TransGlobe Energy Corp., the Calgary-based oil producer with operations in Egypt, declined the most in six months after reporting a dry hole at the first of three planned exploration wells at its South Mariut project.
TransGlobe fell 6.4 percent to C$8.85 at the close in Toronto, the biggest drop since July 5.
The Al Azayem No. 1 well will be plugged and abandoned after TransGlobe found no hydrocarbons in what was expected to be the primary reservoir, the company said today in a statement. TransGlobe operates South Mariut and holds a 60 percent stake.
The rig will be moved 15 kilometers (9 miles) north to drill the second planned well, Al Nahda No. 1, into a different formation that may contain 19 million barrels of oil, according to the company’s “best estimate” in the statement. A location for the third well hasn’t been chosen.
Shale and other dense rock removed from the Al Azayem well will be analyzed for hydrocarbon content, the company said.
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