Eco (Atlantic) Oil & Gas Ltd said the Gazania-1 well offshore South Africa showed no evidence of commercial hydrocarbons.
It said the joint-venture partners on Block-2B will take more time to analyse drill data before considering the next move.
Chief operating officer Colin McKinley said gases usually associated with light crude were encountered throughout drilling, which he believes is significant.
“This, in our view, confirms the active hydrocarbon system, proven by the A-J1 discovery well in 1988, extends to the part of the basin where the Gazania-1 well is located.
“Further seismic interpretation will likely lead to the definition of viable areas for trapping downdip of Gazania-1 closer to the 1988 oil discovery A-J1.”