A Norwegian energy regulator said Friday a subsidiary of British energy company BG Group came up dry while drilling in the northern waters of the North Sea.

The Norwegian Petroleum Directorate said operator BG Norge was targeting reserves about three miles away from the Knarr prospect in the North Sea.

"Extensive data acquisition and sampling has been carried out," the regulator said in a statement. "The well is classified as dry."

BG Group started production from the Knarr field in March using a floating production, storage and offloading vessel that has a production capacity of 63,000 barrels of oil equivalent per day and a storage capacity of 800,000 barrels.

The Knarr field is expected to remain in production for at least 10 years

NPD said total natural gas production in March was slightly less than the previous month, but higher than January's level. Oil production for March was about a half percent less year-on-year, but 1.5 percent above what the regulator anticipated.

BG Group was the target of an early April takeover bid by Royal Dutch Shell. The deal, valued at around $70 billion, is among the largest acquisitions since the Exxon Mobil merger was completed in 1999. It also comes at a time when most energy companies are streamlining capital expenses in a weak oil market.