Genel Energy said Thursday that it did not achieve sustainable oil production rates at its SM-1 wildcat well in offshore Morocco.
The well reached a total depth of 9,268 feet in late October and encountered an oil pay zone.
However, further tests on the well failed to produce a continuous oil flow.
“A subsequent testing program over the same interval failed to produce oil at sustainable rates, potentially as a consequence of the reservoir damage suffered during drilling and well control operations,” Genel said.
The UK-based explorer said further evaluation of well results and other data is required before any definitive conclusions can be reached.
SM-1 is located in the Sidi Moussa licence that covers over 1,930 square miles 46 miles south west of Agadir, Morocco.
The well will be plugged and abandoned.
Genel holds a 60 percent interest in the well.
UK-based San Leon holds a 35 percent stake in the well and UK-based Serica Energy holds a 5 percent stake.
Drilling costs for the SM-1 well raised Genel’s expected full year capital expenditure to $650 million from its initial guidance of between $550 million to $600 million.
The company has slashed its projected capital expenditures for next year to between $300 million and $350 million.