The company said an initial drill stem test run over the interval 1230-1233m in the McKinlay Member flowed water to surface at a rate of 1056 barrels a day, while a second DST at 1191-1200m in the Murta Member recovered 42bbl of water.

But Stuart said it still believed the area had oil potential after residual oil was interpreted from the results.

After Rising Fast-1 is abandoned, Stuart will move the rig to spud the Dunoon-2 well.

Interests in Rising Fast-1, which reached a total depth of 1550m, are Stuart (operator with a 66.7% stake) and Beach Petroleum (33.3%).