August 30, 2011 / 11:39 AM / 7 years ago

UPDATE 2-TVI Pacific says Niger well abandoned, shares fall

* Says operator advises to plug well

* Wireline logs indicated no zones worth testing

* Shares fall 8 pct (Adds details, updates shares)

Aug 30 (Reuters) - Canada’s TVI Pacific Inc said its 20 percent-owned Facai-1 exploration well in Niger, west Africa, where drilling had begun after about three years in June, was plugged and abandoned last week.

TVI shares, which have lost more than half of their value so far this year, fell more than 8 percent to 5.5 Canadian cents on Tuesday morning on the Toronto Stock Exchange.

The Facai-1 is located in the Tenere Block, which is operated by Chinese National Petroleum Corp International Tenere Ltd (CNPCIT).

TVI, which also has interests in oil and gas assets in Alaska and offshore Philippines, said CNPCIT had advised abandoning of the well.

The well encountered two small gas shows during drilling, but the wireline logs indicated no zones worth testing, TVI said in a statement.

The Facai-1 well is the third and final well of a three-well carried program for TVI.

The well was originally scheduled to be spud in May 2008, but operations were suspended as conflicts broke out with Tuareg groups in Niger. The security warning was lifted in November 2009 and in June this year, CNPCIT began drilling the well.

The operator is China’s largest oil and gas producer and supplier as well as one of the world’s major oilfield service providers, according to TVI’s website.

CNPCIT has also drilled two of the other exploration wells in the area - Saha-1 and West Fachi-1. Both wells initially showed presence of oil, but were later abandoned. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below