Results from the Senex Energy-operated Sabre-1 exploration well, in the South Australian Cooper basin, have failed to impress.
The Australian company revealed in its monthly drilling report on Wednesday the well had been drilled to a total depth of 1900 metres and, although it encountered good oil shows, it said the reservoir was poorly developed.
A drill stem test recovered a small about of water with a trace oil and the decision was made to plug and abandon the well.
Sabre-1 was drilled in PEL 111 to test the oil bearing potential of the mid-Birkhead sandstone, about two kilometres south-west of the Snatcher-9 production well.
Senex will now turn its attention to the next exploration well in PEL 111, Warthog-1, which will be drilled to test the potential of the mid-Birkhead sandstone about two kilometres of the Mustang-1 oil discovery.
The company said the drilling rig EAD Rig-3 was currently mobilising to site and would drill the well to a depth of roughly 1890 metres.
Senex operates PEL 111 with a 60% stake and is partnered by fellow Australian company Beach Energy which holds the remaining 40% interest.
Senex also revealed on Wednesday that it was preparing to drill its first prospect on its northern permits in the South Australian Cooper basin.
The Squire-1 well will be drilled on the company's wholly-owned PRL 59 licence, about 50 kilometres north-west of the Acrasia oilfield.
The well will be drilled to a total depth of about 2430 metres to evaluate the oil potential of the Tinchoo formation, with secondary objectives in the Birkhead formation and Wimma sandstone.
Senex said the drilling rig EDA-4 was currently going through finanal acceptance checks before mobilising to site.