Why Beach (ASX:BPT) and Cue Energy (ASX:CUE) shares are sinking lower

The Beach Energy Ltd (ASX: BPT) share price has come under pressure on Tuesday after the release of an announcement.

In afternoon trade the energy producer’s shares are down 5% to $1.77.

Why is the Beach Energy share price sinking lower?

Investors have been selling the company’s shares this afternoon following the release of an update on its drilling activities at the Ironbark 1 exploration well.

The Ironbark 1 well in WA-359-P is located in the North Carnarvon Basin, off the North West coast of Australia. The well was testing the Triassic Mungaroo Formation with multiple sand objectives. The reservoir has previously been explored nearby at comparably shallower depths and includes discoveries at the Gorgon, Goodwyn, and North…