Chariot Oil & Gas Ltd (LON:CHAR) revealed that the Prospect S exploration well, offshore Namibia, did not encounter a hydrocarbon accumulation.
The well encountered its targeted stacked reservoirs within pre-drill prognosis, but, they were found to be water bearing.
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Well data will now be used to allow the company to understand the implications for the prospectivity of the surrounding area. The well will be plugged and abandoned.
"Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems which form the primary targets across many of the prospects within the Central Blocks portfolio,” said Larry Bottomley, Chariot chief executive.
“We will further evaluate the extensive data gathered in the well to understand the implications for the Central blocks portfolio.”
Bottomley added: “With all licence commitments now met across the entire portfolio, the company is fully-funded to progress our assets in Morocco and Brazil whilst remaining vigilant to other value accretive opportunities."
Chariot shares fell nearly 60% in Thursday's deals, down 4.65p to 3.25p per share.