In an operations update, Key said this morning that the well encountered multiple sands over the target section together with minor background gas.

However, electric wireline logging and pressure sampling were unable to identify hydrocarbons in the primary Neocomian target.

Key managing director Ken Russell said the company was hoping for a “more satisfactory result” from the well, but added that the joint venture had gained important information from the region.

“We have obtained a significant amount of technical knowledge for the area and our initial technical review indicates that the main reason for the failure of the Neocomian gas play in this well, is that the Neocomian target sands were encountered too deep and below the gas-water-contact of the adjacent Songo Songo gas field,” Russell said.

The rig is being dismantled and relocated onto Songo Songo Island to begin drilling Kiliwani North-1, aimed at testing a new oil play in the Nyuni Block.

“This well will be testing both the Songo Songo Gas Field reservoir system and a shallower Tertiary structure,” Russell said.

“Kiliwani-1 was drilled on the flank of the Tertiary structure and intersected a sandstone horizon at the mapped depth level.

“Kiliwani North-1 will test the same reservoir interval but more significantly up-dip and within an anticlinal structure.”

Operator of the two-well program is Ndovu Resources, with a 39% stake, while Key holds a 20% stake and Bounty has 6%.