Drillsearch today said Seagoon-1, spudded on November 1, encountered moderate oil shows in the target Wyandra Sandstone.

The mudlog indicated the sands were visually tight with poor porosity, the company said.

A subsequent DST over the interval reverse circulated one barrel of mud and recovered 1.2 litres of rat hole mud from the sample chamber, with a strong hydrocarbon odour and a thin oil film developing.

“The DST was considered a valid test and all drilling results confirmed that the reservoir is oil saturated but tight,” Drillsearch said.

“Consequently the well is to be plugged and abandoned.

“Whilst disappointing, this test confirms that oil has migrated into this part of ATP 299P.”

The company said rig PDI-735 would now move to the Bingleberry-1 site, 7.5km to the west-southwest.

Meanwhile, the company said rig PDI-724 was damaged while setting up at the Endeavour-15 site and as a result the oil delineation well was spudded behind schedule yesterday.

Drillsearch said current operations were drilling ahead the surface hole to 250m prior to running and setting surface casing.

Participating interests in the Tintaburra Block are operator Santos (89%), Drillsearch (10%) and CPC Energy (1%).

The partners last week successfully completed oil wells Mulberry-18 and Endeavour-12 in permit PL39.