Preparations are now underway to plug and abandon the well.

After drilling reached a total depth of 1490 metres, a full suite of electric logs in McClure 1-1 indicated low gas saturations in the primary target, the Princeton Gorge Sand. These shows were not suitable for production testing, Pacrim said.

A decision was then made to drill ahead to test the Guinda Formation. But this proved to be water-bearing.

“The well result is disappointing in that commercial gas was not discovered,” Pacrim managing director Rodney D Foster said.

“However, good reservoir rocks and minor hydrocarbon indications were observed in the well. This is encouraging news for future exploration in the immediate area.”

McClure 1-1 was the first well to be drilled in Pacrim’s 2005 three-to-four well program.

The rig will now move to Plymire Road to start drilling the second well in the next few days, Pacrim said.