The company said its Stockton-20 failed to produce significant oil to surface, while the Stockton-21 well did not encounter any oil shows in the target Knox formation, which was tight and lacked the permeability or porosity seen in the nearby producing 6 and 7 wells.

As a result, Westralian is returning the drill rig to its Riddle lease, where it had better luck with two earlier wells.

It said Riddle-7 was still free-flowing more than 20 barrels of oil per day.

“The existing pump has had to be replaced and this has delayed production under pump,” Westralian said.

“Installation is expected in the next few days, and next week the company should be able to report increased production.”

Meanwhile, production from Riddle-5 has been delayed, as a water zone that interfered with output had to be closed off.

“This work is now completed and the company can proceed with fitting its production tubing and a pump,” it said.

Westralian now intends to drill two more wells on the lease, Riddle-8 and 11.