Sterling Resources report dud well at Sangaw-1
Kurdistan well proves a dud at deeper levels, disappoints investors.
Sterling Resources has reported to the market that its Sangaw-1 exploration well in Iraqi Kurdistan is yielding disappoint results.
The British explorer said deeper parts of the test well, between 3,338 and 4,190 meters, do not flow gas at commercial rates and it would test other parts of the well.
The firm's key project does not flow hydrocarbons at commercial rates in the Jurassic Mus and Butmah and the Triassic Jurra China geological zones, according to Reuters.
Sterling was thwarted in its attempts to carry out wireline logging operations aimed at identifying potential yields from individual zones due to mechanical restrictions within its flow testing equipment, and will instead conduct flow tests in the shallower parts of the well over the coming weeks.
"We are disappointed that the open hole flow test has not demonstrated commercial hydrocarbon flow rates within the deeper horizons of the Sangaw North-1 well," said Chief Executive Angus MacAskill in a statement.
Shares in the company, which have fallen 69 percent in the last twelve months, closed at 45.5 pence on Friday valuing it at 99.8 million GBP ($162 million), according to Reuters.