Tag Oil reports the Company has agreed that after encountering extreme drilling conditions, including high pressure shallow hydrocarbon zones, in the interest of safety, the surface section of the Waitangi Valley-1 well, located in Petroleum Exploration Permit 38348, will be plugged and abandoned.
The bad news is that they are abandoning and plugging this east coast well. The good news in my view is that this well encountered high pressures at shallow depths and it is not a "dry hole" and the indications are "quite positive". You can listen to the call where they discuss what happened. So they are moving the rig back to the west coast to drill out some more Cheal and Sidewinder wells to maintain cashflow while they re-evaluate how they will drill again on the east coast. So the market did not like this but the CEO was clear, and as I have said in the comments recently, this is going to take a few years.