Petro Matad said no hydrocarbon-bearing zones had been identified by a new exploration well in Mongolia.
The Red Deer-1 well was drilled to a total depth of 2000 metres, on budget with a total cost under $4m.
'While the results of the Red Deer-1 well are disappointing, it was the first well to be drilled in any of the basins located in the south of Block XX and it therefore carried a lower chance of success than the wells in the north,' chief executive Mike Buck said.
'The company's activities are now focussed on drilling and testing operations in the north of Block XX and we look forward to updating the market further on the spudding of Gazelle-1 and the testing on Heron-1.'
At 2:34pm: (LON:MATD) Petro Matad Ltd share price was -1.5p at 5.25p