Following perforation of two target zones at the Al Akhaf-1 well in Yemen, pumping operations began on Sunday. During the 24-hour test, formation water was produced with no traces of hydrocarbons.
The testing program has been terminated and the well will be plugged and abandoned.
Junior partner Voyager Energy would also be disappointed. This was the Perth-based company's first overseas venture.
In December, Voyager farmed into the permit, earning a 15% interest in Block 35 from operator Oil Search. At the time the company was considering acquiring stakes in other Yemeni prospects, according to managing director John Begg.
"The amount of money at risk is consistent with our new venture budgeting and will not preclude Voyager from continuing to build on our Perth Basin asset base and pursue other growth opportunities in Australia," Begg said.
Interests in Block 35 are Oil Search (Yemen) Limited (Operator) 31%, Sipetrol International S.A. 30%, Saba Yemen Oil Company Ltd 19%, Voyager Energy Limited 15%, Saba Yemen Oil Company Ltd 5%.