Shares in Desire Petroleum lost almost a quarter of their value as the company said the latest well in its Falklands campaign has yet to strike oil.
The stock, down over 50 per cent in the year to date, fell a further 15.25p to 45p after the release of this latest batch of bad news.
The company said the 25/5-1 well in the North Falkland basin has reached 1,313 metres, with no hydrocarbons found in the Jacinta Prospect.
The well will now be drilled to the planned total depth of around 1,670 metres to evaluate the deeper Dawn Prospect.
Today's announcement follows news earlier in December that the Rachel North well would be abandoned.
That announcement saw the oil company's share price crashed by almost half, dropping 66 to 67.25p, coming just four days after Desire shot up 24 per cent on news that preliminary data showed a "discovery".
Falklands oil exploration was one of the biggest stories on the AIM market in 2010, with many investors riding the white-knuckle rollercoaster ride.
Rockhopper Exploration’s (LON:RKH) Sea Lion discovery confirmed what investors had long hoped for, but all the other wells drilled in 2010 failed to match it.
So whilst we now know that there is oil beneath the inhospitable waters surrounding the Falkland Islands, there is still much to do in 2011.