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Genel Energy (LON:GENL) said the Dilolo-1 exploration well on Block 39 offshore Angola is in the process of being plugged and abandoned after failing to find oil or gas.
The British group had a 7.5% working interest in the well.
In a short statement, it told investors: “Although further studies are needed in order to fully understand the results, the well has provided a useful calibration for other prospects on Block 39.”
The Stena Carron drillship will now move to Block 38, where Genel also has a 7.5% working interest, to spud the Jacaré-1 exploration well.
Genel farmed into the block last April and broker Liberum points out it will have partially carried partner Statoil through this high risk, “high potential and expensive well”.
“Disappointing that there is no encouragement from the results. Jacare is another high risk, high potential expensive well,” it added.
Deustche Bank in a note to clients said it doesn’t expect the result to have any material on the remaining drilling programme.
The shares, off 21% in the year to date, fell another 2% in morning trade. It follows recent dry holes in Morocco and Malta and the hostilities in around Kurdistan, a key territory for Genel.
