“The well was extended to basement to determine if reservoirs below the Rintoul’s Creek Sandstone were developed,” the company said.

“No deeper hydrocarbon-bearing reservoirs were intersected. The well will be plugged and abandoned on completion of logging.”

Karoon’s high impact leads are in its Browse Basin acreage, which is seen as having serious liquefied natural gas potential. But the company is hoping to commercialise oil leads in its onshore Gippsland acreage in order to generate cash flow to help drive its offshore ambitions.