After closing at 73 cents on Friday, BSOC closed at 30 cents yesterday – a drop of 43 cents or 58.9%.
The company had previously said the ZaneGrey formation, in the offshore Gippsland Basin, had the potential to produce 134 million barrels of recoverable oil.
“The main interest in the well was a zone of wet gas shows, trace fluorescence and resistivity anomalies over 21 metres from 3305 metres (2858 vertical metres below sea level),” BSOC said.
“This zone is the equivalent of the interpreted oil bearing sandstones penetrated in the Nannygai-1 well,” the company said.
“However, despite these positive indicators, formation pressure tests have conclusively shown this interval at the ZaneGrey-1 to contain only residual hydrocarbon saturations which [the company] believes to be non-commercial.
“Fluid samples from this zone are still being brought to surface. Deeper zones of interest in the well, which exhibited weaker gas shows during drilling and resistivity anomalies on wireline logs, have also been shown to be water-wet and non-commercial”
Participants in the Vic/P42 joint venture are Bass Strait Oil Company Ltd (operator) 50% and Inpex Alpha Limited 50%.
