Korea Gas Corporation's stock price hit the lower price limit in after-hours transaction on the 6th after the market closed. The first exploratory drilling, which aimed to confirm whether oil or gas is actually present in the deep-sea gas prospects named 'the giant whale,' has concluded, but the failure to verify its commercial viability affected this.
Korea Gas Corporation's stock traded at 31,950 won in after-hours transaction at 4:20 p.m. on that day. This represents a decline of 9.87% (3,500 won) compared to the regular market closing price of 35,450 won on that day. The lower price limit in after-hours transaction is -10% compared to the closing price.
Korea Petroleum, classified as a theme stock of the giant whale, also recorded the lower price limit in after-hours transaction. Stocks of Korea ANKOR Oil and Hung-gu Oil were traded at prices more than 8% lower than the regular market closing price.
The Ministry of Trade, Industry and Energy and Korea National Oil Corporation (KNOC) announced the results of the exploratory drilling for the giant whale prospects after the market closed that day. Although a detailed analysis remains, it is said that the gas saturation level in the hydrocarbons fell significantly short of what could be deemed economically viable.
The government noted that the likelihood of discovering commercially viable quantities of oil or gas in the giant whale prospects is low, and it has decided to proceed with explorations of other promising structures starting from the second drilling. The government plans to begin attracting overseas investment next month and will determine the targets for the second drilling based on corporations' intentions.