Gulfsands slips on plugging of Moroccan well

10th Jan 2014 10:28

AIM developer Gulfsands Petroleum further disappointed investors as it decided to plug and abandon a well in Morocco. The Ben Fidal 2 well was found to be non-commercial despite significant gas shows that were encountered on the way down.However, analysis suggested that the channel fill section was likely to be very finely laminated sand and shale with uncertain production performance.The company noted that a post drill review of the well result suggested a gas accumulation was likely to be present at the well location, but that "additional evaluation methods are required in order to more fully evaluate the commercialisation of these finely laminated reservoir sections".Chief Executive Mahdi Sajjad was encouraged that the well appeared to have confirmed the geological model and encountered gas. "We will be undertaking further studies, including the results of this well, which may lead us to more robust evaluation methods and the potential commercialisation of these finely laminated reservoirs."Shares in Gulfsands were down 9% to 43p at 10:25 on Friday.OH