In a statement, the junior company said the data indicated that all zones encountered were either water-wet or too tight to produce the hydrocarbons present.
As a result, Eagle Bay has set abandonment plugs and is releasing the rig to the next wellsite, Vanessa-1, which is expected to spud by the end of this week.
In addition, the joint venture has agreed to pay independent consultants, ISIS Petroleum, $500,000 to look at drilling a new well at the Emily-1 location, the geology and petrophysics of the two western wells and to look at the western section of the permit where the basal Birkhead oil migration pathway is at depths of 1800m or less to avoid the tight formations experienced in Sarahlyn-1.
The PEL 182 JV comprises Audax Resources with a 49.9% stake, Eagle Bay (operator with a 37.6% stake), Dome Resources (7.5%) and Australian Oil (5%).
