April 8, 2011 / 3:43 PM / 7 years ago

UPDATE 1-Harvest Natural kills oil and gas rich well, shares fall

* Discontinues ops at oil & gas rich Indonesia well

* Says it drilled the well to a depth of 5,300 feet

* Shares fell as much as 10 pct (Follows alerts)

April 8 (Reuters) - Harvest Natural Resources said it plugged and abandoned a oil and gas rich well in Indonesia as high pressure made it difficult to control the well, sending its shares down as much as 10 percent.

The company, which plugged and abandoned the well on Wednesday, said a test confirmed the presence of hydrocarbons in the Lariang sub-basin.

Harvest Natural, which drilled the well to a depth of 5,300 feet, said losses of heavy drilling mud into the formation and very high formation pressures, led to the decision to discontinue operations for safety reasons.

“Although we were not able to test the primary Eocene target due to high formation pressure and safety reasons, the well confirmed the existence of hydrocarbons within the secondary Miocene target,” Chief Executive James Edmiston said in a statement.

Shares of the Houston-based company were down 69 cents at $15.02 in morning trade on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan; Editing by Jarshad Kakkrakandy)

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