Finder Energy (FDR) shares have nosedived after the company provided a “disappointing” update on the Kanga-1 well in the Dampier Sub-basin, Western Australia.

Since the last report, the diamond offshore ocean apex semi-submersible drilling rig has set the 9 5/8 inch casing and drilled the 8 1/2 inch hole to a total depth of 3400 metres below the drilling rig rotary table (mRT). However, no commercial hydrocarbons were intersected.

The well will now be plugged and abandoned as planned.

CEO Damon Neaves said that while this is a disappointment, the company has a high quality and valuable portfolio of drill-ready prospects in both the North West Shelf and North Sea.

“We remain confident that our portfolio will deliver a material discovery,” he said.

“Our farmout strategy ensured that Finder had minimal financial exposure in Kanga-1.

“Finder remains in a strong financial position and is fully funded to execute our work programs and deliver on our strategy over the next few years.

“Our focus now turns to farm-outs across our broad portfolio to fund future wells with industry partners, ensuring our existing shareholders are highly leveraged to drilling success.”

The company has extended its gratitude to SapuraOMV and the various contractors involved in Kanga-1 for their performance in delivering a safe and efficient well.

FDR shares were down 37.8 per cent, trading at 11.5 cents as of 10:17 am AEST.