LONDON (ShareCast) - (ShareCast News) - Drilling by Sound Energy at its Badile exploration well onshore Italy discovered sub-commercial volumes of gas, deflating its shares by more than a quarter.


The company drilled to a total depth of 4472m and found significant gas shows that were also accompanied by water influx and mud losses into what it believed were from fractures in the formation.

Sound said the gas shows suggested a 12m gas column below 4375m beneath which, the water influx and resisitivity data are consistent with a gas/water transition zone, a gas volume that feels is "sub commercial".

The company said it would run a "limited set of logs" and if they confirm its initial assessment the well is likely to be plugged and abandoned.

Chief executive James Parsons said: "The likely sub commercial volumes at Badile are of course a disappointment.

"Our focus now returns to our more material Eastern Moroccan position, where the seismic acquisition has begun and we are positioning for further drilling in Q4 of this year."

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