Kris Energy shares hit record low of $0.86

Here's what to blame.

According to a report, shares in upstream oil and gas group Kris Energy plunged 27% to close at a record low of $0.86 yesterday after the company announced on Thursday that it had plugged and abandoned an exploration well at another of its promising Vietnam prospects.

Here's more:

The stock fell sharply in heavy trading as 28.2 million shares changed hands with a total value of SGD25.3 million traded last Friday. Kris Energy had announced on Jan 9 that it had plugged and abandoned its Vietnam Cua Lo-1 well in Block 105-110/04 (Block 105).

"Although gas flowed during the test, the poor reservoir deliverability rate combined with high carbon dioxide content suggests that development of the tested reservoir will be unlikely," the company had stated.

Thursday's disappointing news on Block 105 compounded negative sentiment on the stock following an earlier announcement on New Year's Eve that its Vietnam Ca-Ngu 1 well on Block 120 would be plugged and abandoned.

Kris Energy was listed on July 19 last year at an IPO price of SGD1.10 with a total offering of 246,154,000 new shares raising net proceeds of USD203 million. Its key shareholders are Kris Energy Holdings with 45.2 per cent and Keppel at 31.4 per cent.