Wireline logs confirmed the target is water wet while the Permian interval associated with gas shows and weak oil shows is tight.

"We are obviously disappointed with the result of Armstrong-1," Mosaic managing director Lan Nguyen said.

"However, geological data obtained from the well will provide Mosaic with valuable information for our ongoing evaluation of ATP-709P as well as the general area."

Mosaic has a 100% stake in ATP 709.

The Century Rig 7 is being mobilised to drill the CS Energy-funded Waggamba-5H well in PL 202.

CS Energy will be entitled to 50% of gas production and 35% of free oil and condensate production from the well.