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.”

The FTSE 100 was hit once again by negative undertones from US tech shares on Friday after another sharp selloff overnight.

The NASDAQ closed down 1.9% as investors sold out of US technology names amid questions about an AI bubble. Tesla was heavily hit, while Palantir had another session to forget.

The FTSE 100 had displayed some resilience earlier in the week and shrugged off weakness in the US. But this resilience ebbed on Friday, and the index was down around 0.6% shortly after midday.

Although concerns about the frothy AI valuations are playing out in markets this week, many still believe in the sector’s long-term opportunity, especially given the sheer level of revenue it generates. The makeup of the market is very different from that of the Dotcom boom, and analysts are suggesting the current dip is a buying opportunity.

“For those brave enough to stomach market gyrations, that could present opportunities,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Qualcomm was the latest tech name to provide evidence that demand for semiconductors remains robust. The chip designer beat forecasts for the fourth quarter, with guidance also topping estimates. It’s not been a frontrunner in the AI race but is refocussing its attention on the space. 

“CEO Cristiano Amon thinks the AI opportunity may be underestimated despite the wall of cash being deployed in the build out.”

Away from the US AI trade, the FTSE 100 had its fair share of worrying corporate updates on Friday.

Rightmove was the FTSE 100’s top faller after signalling slower growth in the year ahead amid investment in AI.

“The market did not like Rightmove’s latest update one bit as it warned of slower profit growth in 2026,” said Russ Mould, investment director at AJ Bell.

“This is a function of a big increase in investment, largely in artificial intelligence. Investing for future growth is not a bad thing but the scale of the market’s negative reaction implies real scepticism about its decision to put so much money into AI.

“In the longer term Rightmove suggests this expenditure will drive double-digit underlying profit growth, however, the market is far from convinced by this jam tomorrow story.”

Rightmove shares were down 12% at the time of writing, and one must wonder whether the negative reaction would have been as severe if its news of an AI investment hadn’t been released against a backdrop of concerns in the US.

IAG shares also descended sharply, losing 8%, after reporting flat revenues in Q3 compared to the same period last year.

“When a share price rallies 88% in six months, it makes itself vulnerable to the bad news hunters,” said Chris Beauchamp, Chief Market Analyst at IG.

“Such has been IAG’s fate this morning, dropping sharply after its results showed weakness in the key US business. This is unlikely to spark a rerun of March & April’s losses, but a recovery in this area will be the element to watch in the next few updates, if the shares are to resume their dizzying ascent.”