The Beach Energy Ltd (ASX: BPT) share price is having a tough time on Wednesday.
In morning trade, the energy producer's shares are down 7% to $1.32.
This leaves the company's shares trading within touching distance of their 52-week low of $1.28.
Why is the Beach Energy share price being sold off today?
Investors have been quick to hit the sell button this morning following the release of a disappointing announcement relating to the company's Perth Basin exploration program.
The Perth Basin exploration program, which is jointly owned by Beach and Mitsui E&P Australia, is looking for gas across 174,000 square kilometres both onshore and offshore south-western Western Australia.
Most recently, the company has been exploring the Trigg 1 gas exploration well.
According to today's announcement, the well reached total depth of 4,914 metres (measured depth) on 3 June. And while gas shows were present in the primary Kingia target, no gas could be recovered with wireline testing.
Management notes that the reservoir is interpreted to be tight with insufficient porosity and permeability to flow gas. As a result, Trigg 1 will be plugged and abandoned and the pre-planned side-track, Trigg 2, a contingent appraisal well, will not be drilled.
Beach advised that the rig will now move to the Trigg Northwest 1 well location. After which, Trigg Northwest 1, Tarantula Deep 1, and Beharra Spring Deep 2 will be drilled.
Judging by the Beach Energy share price performance today, some investors aren't willing to stick around to see if these drilling results are better.
Following this decline, Beach Energy's shares are now down by approximately one-third since this time last year.
