Disappointing Well Results Bring Chariot Shares Down

Reuters reported that Chariot Oil & Gas Ltd. (LSE:CHAR) saw its stock market value drop more than 60 percent after tests showed that the Kabeljou well at its Namibian Nimrod prospect has no commercially-viable gas or oil.

As quoted in the market news:

Shares in the company, a favorite play among many retail investors, plunged over 60 percent to 35 pence. Volume reached nearly 47 million shares, worth more 16 million pounds ($26 million), by 0633 EDT.

“The Nimrod prospect was Chariot’s largest target in the south and although there are still other areas of interest in this license, the miss at Kabeljou represents a material blow to Chariot’s equity story,” said analysts at Investec, changing their stance on the stock to “hold” from “buy”.

Analysts at Peel Hunt also downgraded their recommendation, moving to “sell” from “hold” and cutting their target price to 40p from 150p.

Click here to read the full Reuters report.