News out this morning is not good as suspected.No signs of any...

News out this morning is not good as suspected.

No signs of any hydrocarbons in the Kahu-1 well and the sandstones were of poor quality at that site.

"Kahu-1 Exploration Well Disclosure Notice

NZOG (New Zealand Oil & Gas Ltd) advises that as at 0600 hours today (NZ time) plug and abandonment operations were starting at the Kahu-1 exploration well.

Wireline logs were acquired after reaching a total measured depth of 3,835 metres.

The targeted Kahu valley feature was located as prognosed but was not reservoir quality sandstone. No significant hydrocarbons were found.

The Kahu-1 well was an exploration well within PMP 38158, located approximately 3 kilometres east of the producing Tui oil field.

At the conclusion of operations at Kahu, the Kan Tan IV drilling rig will be released to the joint venture drilling the Tuatara-1 exploration well. "


So back to the drawing board and further analysis of seismic on the other near Tui structures I guess. There must be more oil contained in some of the other prospects in the vicinity.

This result could be an "ouch" for the PPP share price today.