The well reached a total depth of 1972 metres and wireline logs had been completed, said partner Great Artesian Oil and Gas.

The company said a drill stem test was conducted between 1403.5 and 1411 metres within the McKinlay Member on October 2. It claimed this zone had shown good hydrocarbon indications during drilling, but produced only water upon testing.

“Subsequent side wall core samples from another potential reservoir zone within the Patchwarra Formation failed to yield any significant indications of hydrocarbons and a decision has been made to plug and abandon the well,” said Great Artesian managing director Dr Raymond Shaw.

Meanwhile, PEL 107 joint venture partner Beach Petroleum is making plans to install two 880 barrel storage tanks and a three phase separator to production test the Kiana-1 well over the Patchawarra Formation. Beach expects the testing to finish in about two months.

As reported on September 6, Kiana-1 was flowing 2.8 million cubic feet of gas and 1100 barrels of oil per day.

PEL 107 participants are: Beach (operator and 40%), Great Artesian (30%) and Magellan Petroleum (30%, subject to a farmin with Great Artesian and conditional upon a commercial discovery).