Mena Hydrocarbons says drilling halted at Syrian well

Canada’s Mena Hydrocarbons Inc (MNH.V) said drilling of the Itheria-1 well at Block IX in Syria has been suspended due to political turmoil in the country, sending its shares down as much as 35 percent to a three-year low.

Loon Latakia Ltd, an indirect unit of Kulczyk Oil Ventures Inc KOVP.WA and the operator of Block IX, has suspended all exploration operations in Syria, Mena Hydrocarbons said in a statement.

Mena holds a 30 percent interest in Block IX.

The original planned target depth of the Itheria-1 well was 3,256 metres, but drilling was suspended at a depth of 2,072 metres, Mena said.

Mena said it, along with its joint venture partners, will continue to evaluate options for the block. Talks over the block are on with the Syrian government, the company said in the statement.

Kulczyk Oil had sought an extension of the first exploration period of the Block IX production sharing agreement from the Syrian government which was refused, Mena said.

Kulczyk Oil is an international upstream oil and gas exploration and production company with projects in Brunei, Syria and Ukraine.

Shares of the company were trading down 30 percent at 12 Canadian cents on Monday morning on the Toronto Venture Exchange, after touching a low of 11 Canadian cents earlier.

Agencies