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Thu Aug 2, 2012 9:38am GMT
Aug 2 (Reuters) - British oil and gas explorer Ophir Energy Plc lowered its resource estimate at its Papa-1 well in offshore Tanzania, sending its shares down as much as 14 percent.
The company said its preliminary analysis indicated an in-place resource of between 0.5 and 2 trillion cubic feet (TCF), well below its previous expectation of 3.1 TCF.
"The range reflects the uncertainty associated with the preliminary analysis of the geological parameters - water saturation, porosity, etc," RBC Capital Markets analyst Al Stanton said in a note.
The well, a part of a joint venture between Ophir and BG Group Plc, encountered an 89 metre gas-bearing column and further analysis will commence shortly to refine the in-place and recoverable resource estimates, the company said.
"It is likely to result in lower ultimate recoverable resources in the play," Oriel Securities' Nick Copeman said.
Ophir's shares were down about 9 percent at 530.5 pence at 0936 GMT on Thursday on the London Stock Exchange.
© Thomson Reuters 2012 All rights reserved
Aug 2 (Reuters) - British oil and gas explorer Ophir Energy Plc lowered its resource estimate at its Papa-1 well in offshore Tanzania, sending its shares down as much as 14 percent.
The company said its preliminary analysis indicated an in-place resource of between 0.5 and 2 trillion cubic feet (TCF), well below its previous expectation of 3.1 TCF.
"The range reflects the uncertainty associated with the preliminary analysis of the geological parameters - water saturation, porosity, etc," RBC Capital Markets analyst Al Stanton said in a note.
The well, a part of a joint venture between Ophir and BG Group Plc, encountered an 89 metre gas-bearing column and further analysis will commence shortly to refine the in-place and recoverable resource estimates, the company said.
"It is likely to result in lower ultimate recoverable resources in the play," Oriel Securities' Nick Copeman said.
Ophir's shares were down about 9 percent at 530.5 pence at 0936 GMT on Thursday on the London Stock Exchange.
© Thomson Reuters 2012 All rights reserved