Eco Atlantic Oil & Gas Ltd on Friday said that its Gazania-1 well had reached its target depth of 2,360 metres but did not show evidence of commercial hydrocarbons.

Eco Atlantic is an oil and gas exploration company focused on the offshore Atlantic Margins, with licence interests in Guyana, Namibia, and South Africa. The Gazania-1 well is located on Block 2B, off the coast of South Africa.

The well, which was spudded on October 10, will now be plugged and abandoned.

Eco Atlantic shares plummeted 54% to 19.27 pence each in London on Friday morning.

‘While it is naturally disappointing not having made a commercial discovery, the Gazania-1 well was only the first of four wells we have planned for the next 18-24 months across our wider portfolio,’ said Gil Holzman, co-founder & chief executive officer of Eco Atlantic.

The company will now move onto executing plans for more exploration wells.

This includes a two-well campaign on on Block 3B/4B, offshore South Africa, and at least one well on the Orinduik Block, offshore Guyana.

‘We have established ourselves as a qualified and reliable Offshore Operator. This experience will be extremely useful for our future exploration campaigns, particularly upcoming on Block 3B/4B,’ added Holzman.

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