The company said the last well, Fermat-1, in VIC/P46 will be plugged and abandoned after it failed to find any significant hydrocarbons.

Fermat-1 was drilled by the West Triton jack-up rig to a total depth of 3585m and was believed to have the potential to hold up to 1.15 trillion cubic feet of recoverable gas resources.

The first well, Peeyay-1 in the Bass Strait permit T/39P, also failed to find any hydrocarbons.

The second well, Spikey Beach-1 in T/38P, was not drilled after the rig failed to jack up at the well location.

Beach chief operating officer Hector Gordon told PetroleumNews.net the sea floor conditions at Spikey Beach turned out to be unsuitable for using a jack-up rig and the company will have to work out when and how to drill Spikey Beach.

Gordon added that the company is disappointed with the latest results.

"We were hoping to discover gas and we didn't," he said.

Meanwhile, Essential Petroleum, which holds a 25% interest in VIC/P46, told PNN the company is continuing with negotiations for a farm-in partner for the permit.

Essential is on the hunt for a farm-in partner for its interest in the permit so it can meet the funding commitments for Fermat-1 and fulfil its joint venture obligations.

To date, the company has not yet met the December 2008 cash call requirements for the drilling operations on Fermat-1.

Beach is operator of VIC/P46 and has a 50% interest in the permit, Essential has 25% and Mitsui E&P Australia has the remaining 25%.

In T/38P, Beach is operator and holds 80% while in T/39P, the company has a 50% interest.