Partner Tap Oil said the extensive gas shows noted while drilling to a depth of 4017m has been interpreted as residual and no potentially gas-productive reservoir intervals are evident.
Preliminary interpretation of additional logs run at the current depth also suggests the main objective penetrated by the well consists of a thick, water-wet sand package with low saturation gas throughout.
Tap anticipates that the well will be plugged and abandoned following completion of wireline logging.
Despite the disappointing results, Tap believes the overall gross 300m thick reservoir section was above expectations for the stratigraphic interval in the region.
"As the post-well analysis is conducted over the coming months, this may enhance prospectively elsewhere in the Harriet joint venture," Tap said.
The JV was targeting a large structure in the Barrow Sub-basin that could hold about 1 trillion cubic feet of gas and 20 million barrels of recoverable condensate.
Marley-2 is 143km north of Marley-1 and was designed to test Jurassic sandstones that Marley-1 failed to reach.
The Harriet joint venture comprises Apache Northwest (operator and 68.5%), Kufpec Australia (19.2771%) and Tap (12.2229%).