Feb. 13 (Bloomberg) -- Zodiac Exploration Inc., which explores for oil and natural gas in California, plunged the most in 22 months after it damaged a well during horizontal drilling.
The shares fell 33 percent to 13 Canadian cents at the close in Toronto, the biggest decline since March 25, 2010.
Zodiac was forced to clean up a well in Kings County, California with foamed acid after possible damage to the hydraulic fractures and the reservoir, the Calgary-based company said in a statement today. The type of drilling being done on the well is new to California, it said.
“Limitations of the surface and downhole equipment available to us, and the downtime caused by failure of key pumping units during the critical phase of the operation, has, in our view, limited our ability to achieve optimal flow rates,” said Chief Executive Officer Murray Rodgers.
--Editors: Tina Davis, Jessica Resnick-Ault
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