I'm sure it's a gas discovery. Imho, all the clues are contained...

I'm sure it's a gas discovery. Imho, all the clues are contained in ARQ's 1 Nov update:

“Mud gas readings of up to 10% have been recorded at surface from intermittent circulation during attempts to cure lost circulation”...

...and:

“The loss of mud to the Nullara Fm has continued to create operational difficulties that have delayed testing the interval. However, we remain very encouraged by the presence of both porosity and significant permeability in the Nullara limestone section, and the more recent intermittent gas shows when mud circulation is established are also viewed positively.
The planned test of the Nullara Fm will determine fluid content and potential flow characteristics of the reservoir. The Stokes Bay-1 intersection of the Nullara Fm is 80m up dip of the Pt Torment-1 intersection which did not have the vugular porosity developed, but nevertheless tested gas at low rates.”

..You wouldn't expect to find either oil or water updip of gas in same reservoir formation UNLESS some sort of structural break exists between the two locations (1.5km apart). I don't think the existence of such a break, eg fault, is suspected.