Oil Search Ltd. (OSH.AU) said Tuesday that an evaluation of the Korka-1 discovery in Papau New Guinea has presented disappointing results and the well will be plugged and abandoned.

Oil Search recently said it gleaned elevated gas readings and oil shows at the well but further testing has indicated the presence of residual hydrocarbons and water. This indicates that whatever oil and gas was there has since leaked away.

"So it's basically a dry well," an Oil Search spokeswoman said.

"Obviously the result is disappointing but there are a number of wells that we are drilling," she said, noting that the higher-risk well had a relatively low probability of success.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com
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