“Although we are disappointed with the drill results from Rainbird-1, we take comfort that the Rainbird drill prospect was selected collectively on the basis of seismic and geological data, with the geochemical coincidence utilised as a confirmation tool only,” Red Sky managing director Bryan Quinn said.

“We feel that Red Sky’s hydrocarbon prospect selection technology, as outlined in detail in our prospectus, continues to be valid and we intend to capitalise on it in future target selection.

“Red Sky will release the location and schedule of the next drill prospect shortly.”

If there had been a commercial discovery, participants in the Rainbird-1 well would have been: Stuart Petroleum (operator) 36%, Cooper Energy 15%, Red Sky 24.5% and Magellan Petroleum Corporation 24.5%.