Drilling problems at the company's Whicher Range operation and disappointing results from the Alpullu well in Turkey have sent the share price plummeting 15% overnight to around 84 cents at the time of printing, after peaking in late July at $1.42.

Amity had been hoping to declare the Whicher Range well, which has estimated reserves of around three to four trillion cubic feet of gas, commercially viable this week. However drilling has been delayed after the drill intersected what is now believed to be a high angle fracture that flowed water into the well bore.

Currently operations are sealing off this fracture with chemical compounds designed to plug up lost circulation zones. Once the fracture is sealed, and the water influx terminated, the fluids in the hole will be un-loaded and air drilling will continue. This operation is expected to take approximately two days.

In Turkey at the company's 100% owned Alpullu-1 well testing revealed signs of pressure depletion, which could indicate that the lateral extent of this gas accumulation is limited.

Without 3D seismic the connectivity or extent of these gas sands are unknown and require more drilling or seismic information to confirm.

While admitting the result was disappointing Amity said the test did confirm the presence of gas in this area of permit 3599 and provides encouragement to continue the drilling program.