Buru Energy’s onshore Canning Basin exploration program with Quadrant Energy has failed to fire after the company reported a lack of hydrocarbons at the Olympic-1 conventional oil well.

The primary objective of the Olympic-1 well, located 60km to the southeast of Broome in Western Australia, is conventional oil reservoirs in the Willara Formation with secondary objectives in the underlying Nambeet Formation.

Earlier this month Buru confirmed there were no significant hydrocarbons in the Willara Formation objectives.

In a statement to the Australian share market today, Buru revealed more disappointing results from the campaign, announcing no significant hydrocarbon shows had been encountered in the Nambeet Formation to date.

Buru will continue to core ahead through the secondary objective Nambeet Formation to the planned total depth of about 1,450m.

Buru and Mitsubishi Corporation both have a 25 per cent equity interest in the well and in EP 473 while Quadrant Energy owns the remaining majority stake following Apache’s exit from Australia.

The Olympic 1 well is located in exploration permit EP 473 and the drilling of the well will satisfy the year four work commitment on that permit.

Under a farm out agreement originally inked with Apache in 2013, the cost of the well is fully funded by Quadrant as part of a broader commitment to fund a $25 million exploration program on EP 390, 438, 471 and 473.

When the farm out was initially announced, Buru said Apache’s entry into the Canning Basin provided a “strong endorsement of Buru and Mitsubishi’s s exploration and appraisal activities to date and their shared belief in the significance of the region as a potential major energy supplier to Western Australia.”

Shares in Buru fell 2.4 per cent to 40 cents.