The Perth-based junior reported yesterday that the Cattamarra coal measures sandstone reservoir objectives were found to be water-bearing, while oil shows seen in the well were interpreted to be residual oil.

"These sandstone reservoirs have been breached by faulting and, as a consequence, no commercial hydrocarbons were encountered in Moriary-1," Empire said.

Joining Empire, with a 40% stake in the well, was Allied Oil & Gas (25%), ERM Gas (25%) and Black Fire Energy (10%).

Empire is looking towards its Carnarvon Basin drilling program, which will be kicked-off with the Lake Macleod-1 well in EP 439.

This will be followed by nearby Star Finch-1 in EP 5/06-7.