Tullow Oil is preparing to lay bare the full impact of a fruitless search for black gold on its long battle against a stubborn pile of debt.

The explorer will deliver a trading update on Wednesday, a week after admitting its ambitious South American project off the coast of Suriname failed to strike oil.

The Araku project had been touted by analysts as one of the best oil prospects of 2017.

Investors had hoped the first well would boost revenues and help Tullow pay down the debt. The company’s borrowing burden has already forced a $750m (£574m) rights issue and a major financial restructuring.