The 1-VBEP-2-SPS well was drilled to 4450 metres and "preliminary data indicate that the well has not encountered material reservoirs with hydrocarbon," Panoro said in a statement.
The BM-S-63 block is about 230 kilometres off Sao Paolo state in about 200 metres of water.
Operator Vanco Brasil has a 40% stake, Ecopetrol 30%, Panoro 15% and Brasoil 15%.
The group's first well in the area, Sabia, also failed to yield a home-run result and is being evaluated for commerciality, Vanco previously said.
Transocean's
