Another dry well deals a blow to Rocksource investors

Rocksource ASA (OSE:RGT) lost nearly half of its stock market value today after the company announced completion of drilling on the Kora-1 well, which turned out to be dry. The well was a frontier exploration well in 2,600 metres of water and was drilled to a total depth of 4,447.5 metres. The company says that the well encountered predominantly claystone and thinly bedded limestone instead of sandstone as the company was predicting.

Rocksource says that better data analysis is required before prospectivity of the Senegal-Guinea Bissau portion of the MSGBC Basin can be determined. Rocksource deal on the Kora-1 was such that the company comes out of the matter without direct losses. Rocksource has now completed three exploration wells this year with two of them being dry. Two more wells are expected to spud in September.

Rocksource’s vision is to deliver among the highest exploration success rates in the industry by approriate application of technology. Rocksource tackles projects where electromagnetic (EM) data may have a big impact on success rates.