Government officials said the partners had satisfied the work obligation for the first exploration phase and extended the licence into its second exploration phase.

The government has also allowed the JV until November 30 to finalise a work program and complete a re-appraisal of the licence in order to select acreage to be retained in accordance with statutory requirements.

During the drilling of Nyuni-1 both the target - Lower Cretaceous (Neocomian) and Upper Jurassic - formations revealed shows of gas and oil. However, the results from the testing program, which used an MDT tool (Modular Formation Dynamics Tester) to provide down-hole well test information, were inconclusive and subject to recurring mechanical failures of the tool.

The MDT program was designed to take pressure data and fluid samples to a depth of 3886m, but no fluid samples have been obtained below a depth of 3406m. Given the uncertainty of being able to undertake satisfactory repairs to the tool the testing program was terminated (with a substantial portion remaining incomplete), the tool stood down and the well suspended with a wellhead in place.

At the time Bounty managing director Tom Fontaine said: "While we are clearly disappointed that we were unable to obtain definitive results at Nyuni-1, we believe that the well has confirmed the prospectivity of the region and has substantially upgraded the potential of the permit."

Now the JV is planning more drilling and is likely to reprocess existing, and acquire new, seismic data within the licence area.

Partners in the Nyuni Block are Bounty Oil & Gas NL 10%, Ndovu Resources 60% (Operator) and Petrom SA 30%.