Statoil's hopes that it would be producing oil commercially in Irish waters by next June have received a setback after one of its test wells off the west coast proved to have inadequate oil flows.

A company spokesman said yesterday the results were disappointing at the appraisal well about 100 miles west of Galway.

"We were testing at the main reservoir and the testing definitely did not come up to our expectations, so the test has been stopped," Mr Kai Nielsen, public affairs manager for Statoil International Upstream, said.

He said the decision was made last week and testing in the Connemara Field, located in the Porcupine Basin, was now being switched to a second well, located at a nearby reservoir.

Last month, the Norwegian company said it hoped to be in production by June if the testing on the well's pressure and its quantities were satisfactory. "We can say that it is going to be later than anticipated if there is going to be production," Mr Nielsen said.

A tanker, the Berge Hugin, which was collecting the crude oil, has now left the well site, but the oil rig, which is being hired from the JW McLean company, will remain while drilling equipment will be moved to the second appraisal well less than one kilometre away. Mr Nielsen said the test results showed there was not a set of underground oil channels at that point.

Although the first test results were negative, they did not decrease the likelihood of oil being produced in commercial quantities from the second well. However, he said: "If it is unsuccessful we are going to pull out of the area."

But he added that there were other areas in which Statoil was operating. The company holds 13 exploration licences.