Three Scottish oil and gas companies suffered a disappointment when a potentially high reward exploration well in the North Sea was dry.
Cairn Energy, Faroe Petroleum and Parkmead Group all had stakes in the Spaniards East well around 115 miles north-east of Aberdeen.
Drilled to see if the existing Spaniards find extended eastwards, the well has been plugged and abandoned. It encountered water at the target depth, around 11,000 feet beneath the sea bed.
The setback follows a period in which the three firms participated in a surge of activity in UK waters by oil and gas companies that wanted to cash in on strong demand.
While Cairn had the biggest stake of the three firms in the well, 21%, the result is the second exploration setback for Faroe Petroleum in the space of a week.
Last Friday, the AIM-listed company decided to relinquish a licence containing the Fulla and Freya finds west of Shetland after concluding they were too small to be commercial.
However, chief executive Graham Stewart said: "Although the Spaniards East well carried a reasonably high level of risk, we agreed to participate, given the upside potential in the event of success, and the fact the well was drilled at no cost to Faroe Petroleum."
Faroe's costs were carried by Cairn, Premier Oil and Serica Energy.
Mr Stewart added: "The partnership has gained useful data from the well, which will further our regional knowledge."
Cairn Energy acquired its interest in the well through the £414 million takeover of Nautical Petroleum in June.
The company has established a significant North Sea position though acquisitions as part of plans to develop a balanced portfolio.
Cairn noted the results of the Spaniards East well without elaborating.
The company said: "Cairn has participated in nine wells during 2012 in the UK and Norwegian North Sea. This has resulted in two discoveries ... Five wells have been plugged and abandoned and two were suspended."
The well was the first off the UK in which the Parkmead Group, run by Tom Cross, participated. It has a 12.62% interest, with the costs carried by partners.
The company said: "Given that the Spaniards oil accumulation is close to existing infrastructure, it makes sense to fully appraise the extent of the oil reserves and to optimise the technical information gathered."
Shares in Parkmead Group closed down 1.13p at 14.495p.
Faroe Petroleum shares closed down 1.25p at 146.5p.
Shares in Cairn Energy eased 0.6p to 287.5p.
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