But it is continuing with the nearby Eastern Bush-1 wildcat well in licence PEP 38226, which is now more than 1752m down to a targeted depth of 1780m.

Wellington-headquartered L&M yesterday afternoon said Sharpridge-2, also in PEP 38226, was being plugged and abandoned at a depth of 321m after encountering basement some 130m higher than prognosed.

The drilling rig would now be skidded 190m west of its current location to drill Sharpridge Creek-3, which is expected to be spudded by Sunday, May 20.

Sharpridge Creek-2 was an appraisal well for the find made by Sharpridge Creek-1 early last year, which encountered gas and oil shows over a gross interval of 120m in the Eocene-aged Beaumont Sandstone.

L&M is the operator and sole owner of the Sharpridge Creek Prospect.

Meanwhile, L&M said the Eastern Bush-1 well was drilling ahead to total depth, at which point electric wireline logging of the hole would be undertaken.

L&M is drilling Eastern Bush-1 in conjunction with government-owned Mighty River Power, with MRP earning its 50% stake by contributing to drilling costs.