Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola, the company said in a news release.

The rig contract will cease with effect from Nov. 21, 2014.

Statoil said its first well results from the area have been disappointing and although the company still sees remaining prospectivity in the basin and on the Statoil acreage, more time is needed to evaluate the well results and mature new prospects before deciding on future activities.

The first two Statoil-operated wells in this presalt play, Dilolo and Jacaré, have been drilled safely and very efficiently. These two wells also fulfill the drilling commitments on these two blocks, according to the release. The Jacaré well in Block 38 has now been plugged and abandoned.

Statoil is participating in eight commitment wells across five blocks in the Kwanza Basin, the release continued. So far four wells have been completed and one well is ongoing in Block 40 operated by Total.

The costs of terminating the operations and associated services including the Stena Carron rig contract will be onerous contract and expensed in the fourth quarter amounting to about $350 million, the release said.

The 2014 guiding for organic exploration expenditures of $3.5 billion remains, including the Jacaré well cost in Block 38, which will be expensed in the fourth quarter. In addition it is expected that the signature bonus in block 38 will be impaired, Statoil said.