“This decision is based on expert interpretation that the continued production of formation and consequential blockage of the production tubing is due to the failure and partial collapse of the well casing immediately above the zone two perforations,” said GGP managing director Sam Russotti.

“In future Homerun appraisal wells this problem will be addressed by using smaller diameter casing with higher strength specifications.”

Russotti said he was obviously disappointed but took comfort from the fact the partners had previously measured up to half a million cubic feet per day from that zone, prior to it being fracced.

“If zone two flows gas at commercial rates then the pre-drill volume estimates of 191bcf of the Homerun field are still achievable. That of course will depend on the results of future appraisal wells planned for the structure during 2005.”