New Zealand Oil & Gas has not found any oil after drilling part of the formation at its Hoki site, in the offshore Taranaki Basin.
The North Cape formation, one of two being drilled, had been considered the best chance of finding hydrocarbons.
The company says it will keep drilling at the Wainui formation before moving the drilling rig to explore areas around the existing Tui oilfield.
Forsyth Barr says that although the chances of commercial quantities of oil being found at North Cape were small, the result is a big disappointment.
