Chariot oil is swinging low over dud well

Chariot oil is swinging low over dud well

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The group, down 65¼p to 33p, said its Kabeljou well had failed to find any commercial amounts of oil and gas and would be plugged. It said in May it would abandon its Tapir South well in the


area because it too was found to be dry. Chief executive Paul Welch said the latest setback was "disappointing" but added that "there are still other areas of interest in


this licence and these well results may provide us with the ability to identify additional prospectivity in other horizons". It is expected to drill its third well in the region, one of


either four or five in total, in mid-2013. Investec analyst Stuart Joyner called the Kabeljou result "bitterly poor" and a blow to the firm. However, he added: "What is clear


is that the next steps are uncertain given this well result. "Chariot is not in immediate peril and management needs time to reboot strategy." Analysts Peel Hunt said with no


immediate drilling it expected shares to "fall considerably".