It has been a very disappointing morning of trade for the FAR Ltd (ASX: FAR) share price on Thursday.
At the time of writing, the energy explorer’s shares are down a whopping 51% to a new record low of 36 cents.
This means the FAR share price is now down approximately 72% since the start of the year.
Why is the FAR share price crashing?
Investors have been heading to the exits in their droves this morning after the company’s search for oil ended in failure.
According to the release, the company has been drilling the Bambo-1ST1 well offshore The Gambia. However, after drilling to a depth of 3317 metres, no live oil columns were found to be present.
And while the company suggested that its drilling results indicate that there is potential for oil to be found in the area, many shareholders are not sticking around to find out if that is the case.
FAR’s Managing Director, Cath Norman, remains upbeat on the company’s prospects despite this major setback.
Ms. Norman said, “Although no moveable oil was interpreted, FAR is encouraged to have encountered good oil shows and potential reservoirs in the Bambo-1 well and Bambo-1ST1 side-track.”
“The project has provided significant geological information, including new play types, that reaffirms the potential of further hydrocarbon prospects in the A2 and A5 blocks in the Gambia. Bambo-1 and the side-track have confirmed that all of the requisite petroleum system elements are present in the area and the technical team is already busy integrating the new data and high-grading future prospects.”
“FAR looks forward to working with its co-venturer Petronas and the Government of The Gambia on the next steps in realising the exploration potential in country,” she concluded.