Petroceltic International Plc, an oil and gas company, fell the most in a week in Dublin trading after saying it abandoned a well in the Black Sea off Bulgaria as it doesn’t have commercial gas volumes.
Petroceltic dropped as much as 3.7 percent after saying it is analysing the well data to determine whether to enter into the final two year extension of the exploration licence later this year. The Dublin-based company fell as much as 8.5 percent in London trading before paring earlier losses.
“While we believe that the value implications are limited, a positive outcome would have helped maintain the Bulgarian production profile,” said Job Langbroek, an analyst with Davy in Dublin, who has an outperform rating on the company. “The result reminds us that exploration is an uncertain activity, even in cases with a high expectation of success.”
Chief Executive Officer Brian O’Cathain said Petroceltic was “disappointed with the outcome” of the Kamchia-1 well. The drilling rig will now move to complete a development well on the Kaliakra gas discovery, and then drill the company’s first exploration wells offshore Romania later this year, Petroceltic said.
Petroceltic traded down 3.7 percent to 7.8 cents as of 10:22 a.m., with 24,000 shares traded. That is the equivalent of 23 percent of the average daily trading over the past three months. The stock fell 2.2 percent in London.