Heritage Oil, a Canadian exploration firm, has made the biggest Iraqi gas discovery in more than 30 years. But investors hoping for an oil discovery punished the company for its surprise announcement yesterday, sending its share price down 17 per cent in London.
"Previously anticipated prospective oil resources … have proven to be wet gas/condensate," Fox Davies Capital in London said in a research note. "We would expect the announcement to have a negative impact on the share price."
In early afternoon trading in London, Heritage shares were priced at 360.9 pence, down from the previous day's close of 406.6 pence. The steep one-day drop wiped out most of the stock's gain of about 20 per cent during the past month.
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