Q: What's the reason on why PXT opened this morning and took a big hit - down almost 8% at one time. Would it have anything to do with abandoning the an exploratory well? This is all the info I can get
"PAREX RESOURCES INC - IT HAS ABANDONED CHIRIMOYA EXPLORATION WELL AT VIM-43"
Would you have more on this?
"PAREX RESOURCES INC - IT HAS ABANDONED CHIRIMOYA EXPLORATION WELL AT VIM-43"
Would you have more on this?
5i Research Answer:
It is likely due to the well abandonment. It was a higher risk, high return well and some investors were excited by its prospects. But we note that the well was not included in the company's 2023 production forecast at all.