Stock market value of First North listed PetroGrand Ab (STO: PETRO, previously known as Malka Oil) plunged in the final hour of trading on Friday after the Swedish oil company focusing on the acquisition of Russian oil companies and oil licences released its latest drilling campaign update. Chairman Sven-Erik Zachrisson told local media, that he believes that the market did not interpret the announcement correctly and that the decline was an overreaction. According to him the company continues normal development plan. The company is no stranger to controversies and the stock exchange release certainly raises more questions than it provides answers.
The firm said that the testing of Yuzhno-Nazinskaya N-232 well in the Nizhnepaninsky license identified three “interesting levels” with oil and gas flows in limited volumes (which in itself does not really have to mean anything). The company now plans a vertical seismic profiling in order to get more information for a new “more precise” drilling location. Zapadno-Ambarskaya-6 well in the same license area has also shown limited amounts of gas and oil in lower Jurassic. Upper Jurassic tests continue. Ragozinskaya-3 well in Muromsky -2 license similarly shows three “interesting levels” warranting further testing in the near future.
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