By the company’s own admission, gas flow rates have not been as good as hoped, although it puts much of this down to the location of the existing wells drilled by the previous owners.
“As such, the board feels that to expend further funds and management resources on testing the existing wells was unlikely to yield meaningful results in the short term and that a more sensible course of action would be to step back briefly to consider the best way forward at Coos Bay,” said chief executive Scott Kaintz.
“This decision on Coos Bay gives us the needed bandwidth to work towards completion of our agreements with Pared Energy on the potential multi-TCF Texas gas deal recently announced while offering the chance to look at Coos Bay with a fresh top-down technical and commercial perspective.”
He added: “A potential next step includes looking to attract a suitably qualified joint venture partner to help fund the next stage of appraisal drilling activity and testing at Coos Bay with the objective of confirming the ultimate commerciality of the project.”
Away from Coos Bay, Curzon signed a memorandum of understanding with US-based Pared Energy to evaluate a “major onshore natural gas project” in Texas.
The plan, if the pair decides they like it, is to jointly finance and develop the project, which Curzon saying at the time that it offers “multi-TCF (trillion cubic feet) potential”. Negotiations have now begun and are proceeding “constructively”.
Curzon shares dropped 30% to 1.75p on Thursday morning.