OSLO: Swedish independent oil firm Lundin Energy said on Tuesday drilling at its Bask oil prospect in the Barents Sea, which it had hoped to develop jointly with an earlier discovery, had resulted in a dry well.

Lundin had previously estimated Bask to hold up to 250 million barrels of oil equivalent, but the well, located 35 kilometres (22 miles) northwest of the company's Alta oil discovery, contained only traces of hydrocarbons.

The company had hoped that a discovery at Bask could allow for a joint development with Alta, which does not have enough resources to justify a standalone development.

Lundin had no immediate comment on prospects for the joint development.

"The targeted formation contained poorly developed reservoir, and although traces of hydrocarbons were found, it is not considered commercial and the well is classed as dry," Lundin said in a statement.

Lundin holds a 40% stake in the licence where the exploration well was drilled, while Aker BP has 35% and Wintershall Dea owns 25%.