The drilling of the Burton on the Wolds exploration well in Leicestershire has been completed, but the well did not encounter a viable discovery.
Egdon Resources (LON:EDR), the operator and 32.5% stakeholder, told investors that the well encountered only thin sands in the main reservoir target and a deeper secondary target was found to be non-reservoir rock.
"Whilst we are naturally disappointed with the results of Burton on the Wolds-1, I am pleased to report that operations to date have been successfully completed with no safety incidents or impact on either the local environment or the local community," said Egdon managing director Mark Abbott.
"Furthermore, the drilling of the well has been accomplished ahead of schedule and within budget."
The well is now being plugged and abandoned and the site will be restored to its original condition as agricultural land.
Union Jack Oil (LON:UJO), another UK focused AIM quoted explorer, has a 10% stake in the project.
On Union Jack, broker SP Angel said: "While the current results are disappointing, there remains a significant number of opportunities still within the portfolio, in the near term, the testing of Wressle-1 and the appraisal of Biscathorpe, while in the medium to longer term, the North Kelsey prospect will be drilled, and the shale prospectivity needs to be tested."
It repeated a 'buy' rating on the stock but dropped the target price to 0.77p from 0.79p previously (current price: 0.245p).