“It has been concluded that Gilbert-1A has not encountered commercial hydrocarbons,” BSOC said.

But analysis of drill cuttings, wireline logs and sidewall cores from does confirm fluorescence and hydrocarbon shows in the Gurnard Formation, indicating that hydrocarbons have moved into the Gilbert area.

Majority partner Gippsland Offshore Petroleum (GOP) targeted Gilbert on the theory that some of the oil originally trapped in fields in the central Gippsland Basin had been pushed out by late-migrating gas into unexplored shallow traps close to the coast.

While the target formations at Gilbert disappointed, GOP and partner Lakes Oil have several other prospects and leads.

“The objective of proving hydrocarbon migration and accumulation towards the margin has been proven for the Gilbert Block,” Lakes said today.

“The Gilbert joint venture looks forward to focusing their exploration program - which includes shooting new seismic in the block in 2006 - on identifying traps along this hydrocarbon migration pathway.”

Lakes also said that strong fluorescence shows were encountered over the Gurnard Formation interval 624 to 636 metres and elevated gas readings were recordd in several zones through the Gurnard, Latrobe and Strzlecki Formations.

“Interpretation of the formation at this stage is concluding that the live oils are housed within ‘tight’

sections of the upper Gurnard sandstone reservoir,” Lakes said.

“This is very encouraging for exploration elsewhere in the Gilbert Block.”

GOP and Lakes are also checking the gas-forced oil migration path theory with an onshore stratigraphic well called Patrobus-1 in permit PEP155 near Marlo.

Forward operations on the Ocean Patriot rig are to proceed to rig release, which is expected late this week.

Upon release from the Gilbert-1A well, the Ocean Patriot will move about 15km southeast to the Maclean-1 location.

Participants in Gilbert-1 are: Gippsland Offshore Petroleum 51% Eagle Bay Resources 10%, Lakes Oil NL (LKO) 26%, Moby Oil & Gas Limited (MOG) 10% and Stellar Resources (SRZ) 3%. Bass Strait Oil Company (BAS) was operator but had no equity.

Participants in the Maclean joint venture are Bass Strait Oil Company (operator) 40%, Moby Oil and Gas Limited 35% and Eagle Bay Resources NL 25%.