Petro Vista Energy Corporation (TSX: V.PTV, Stock Forum) shares fell 41% to 13.5 cents Tuesday, after the company announced test results from the Morichito #1N well within the Morichito Block in the Llanos Basin in Colombia after Monday’s market close.
The company says good oil shows were encountered while drilling and log data indicated several potential pay zones, but upon testing, these zones proved to be water wet.
“Though water wet, all zones, with the exception of the Paleozoic, indicate good reservoir development and the Company looks forward to drilling its next Morichito well on this promising prospect,” says the company. The Morichito #1N well was the first of a two-well commitment the company has on its Morichito exploration license with the Colombian National Hydrocarbon Agency. “There remain several strong leads and prospects on the block and a full evaluation will be carried out over the next few months in preparation for the next well,” adds Petro Vista.
The company says it will also begin exploration activities over the next few months on its La Maye block in the La Magdalena basin of northern Colombia.
On his Risky Picks blog Tuesday, Risktaker77 offered the following opinion on the news:
…Some bad news was released from Petro Vista - PTV last night. They stated that the previously identified targets have been tested and hit water. This is obviously a HUGE dissapointment but I still have faith that they will hit oil some time in the future. They will be testing another potential pay zone this summer and will continue to explore their land for other potential winners. I have actually downgraded my BUY rating to a HOLD at the moment but must disclose that I have added more to my position this morning. I think it is very cheap at these levels and it would pointless to sell now. Let us not forget that PTV is an oil exploration company and its sp fully relies on its drill results. High returns comes with a price[sic]…