Buccaneer Energy shares sank on Monday after announcing the completion of drilling operations at its Allar #1 well in Texas.
The well, located in the Fouke area of the Pine Mills Field, reached a total depth of 5,767 feet. Buccaneer holds a 32.5% working interest in the project.
At a depth of 5,616 feet, the drilling team encountered a shaly oil sand sequence in the 2nd sub-Clarksville unit. Unfortunately, testing revealed no commercial hydrocarbon accumulation in this formation.
Buccaneer Energy shares were down 27% at the time of writing.
“The results of this well are disappointing; however, the geologic targets and most importantly the bounding fault, came in on prognosis,” said Paul Welch, Buccaneer Energy’s Chief Executive Officer.
“The sand section thinning as it approached the fault was a phenomenon not observed in previous offset wells in the Fouke area and provides valuable subsurface data that will be incorporated into the geological model for the field and future drilling plans.
“The bounding fault follows a northwest trajectory, which permits the Fouke #4 well to be located at a similar distance from the fault as Fouke #1; potentially within a thicker sand section of the sub-Clarksville. AlthoughAllar #1 was considered a low-risk development well, subsurface outcomes can vary even within proven structures, and the data gathered here will directly inform and de-risk the upcoming Fouke #4 location.”