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IPB managing director Brendan Brown. Image courtesy of Finance News Network.

CalEnergy announced Monday that it drilled dry at its Pryderi-1 well in offshore Western Australia.

The well reached a total depth 2,276 feet in the WA-424-P permit and did not encountered any movable hydrocarbons.

Residual oil shows were encountered during drilling but the target reservoir was found to be water bearing.

The well was drilled with the Stena Clyde semi-submersible drilling rig.

It will be plugged and abandoned.

Australia-based CalEnergy, a Berkshire Hathaway Energy subsidiary, holds a 25 percent operating stake in WA-424-P.

Australia-based IPB Petroleum holds a 75 percent stake.

Exploration permit WA-424-P is located 260 miles north of Broome, Western Australia.

The WA-424-P permit holds the Gwydion oil discovery with best estimate contingent resources of 5 million barrels.

IPB said it intends to complete further interpretation and analysis on the well results to gain an improved understanding of the remaining prospectivity in the permit.

“Although the results of this first well are not as predicted, we know that oil is present in this part of the Browse Basin and the data from this well will help us in our ongoing exploration efforts within the permit,” IPB managing director Brendan Brown said.