A controversial proposal to build a man-made residential island off the Northern Territory coast might have come to a muddy end after drilling failed to find any rock at the intended site.

The plan by Top End developer Halikos Group for an “island residential concept” in Darwin Harbour, off Nightcliff Beach, first came to light in 2013 and was met with opposition from community groups and scepticism from others as to whether such a project could survive the Top End’s weather and tides.

In 2014, the NT Country Liberal (CLP) Government granted John Halikos a five-year crown lease to explore the feasibility of building off the Nightcliff foreshore, leading to geotechnical drilling tests taking place about 200 metres offshore.

Labor Member for Nightcliff Natasha Fyles criticised the 98-hectare lease, which she said was “granted without consulting the community, without a social impact analysis statement, without any environmental impact, [and] without consulting Aboriginal Areas Protection Authority”.

In parliament, Northern Territory Planning Minister Dave Tollner said the plan was unlikely to go ahead after Halikos found only mud after its geotechnical drilling explorations.

“They tell me what they’ve found with this technical drilling is mud. And more mud. And more mud. And more mud. But they haven’t actually struck rock anywhere,” he said.

Mr Halikos told Neos Kosmos that he has not yet given up on the project.