INVESTORS yesterday pulled out of Sterling Energy after the oil and gas explorer revealed potential delays in drilling a well in Kurdistan.
Shares in Sterling dropped 11.9 per cent to 53.75p after the group, which focuses on the Middle East and Africa, said gas had accidentally escaped into a well it was drilling in its Sangaw north block, in which it has a 53.3 per cent stake.
Sterling, which is targeting reservoirs deeper in the well, said work to remove the gas had damaged drilling equipment.
It said work to remove the damaged equipment and the gas from the well would be challenging and it did not know how long it would take.
Sterling said the entry of gas into the well was encouraging, but did not show whether it contained significant hydrocarbon deposits.
“Sterling will make a further announcement at the appropriate time,”?the company said in an update.