The lake is located around the southwestern perimeter of the Siljan Ring (Swedish: Siljansringen), a circular geological formation which was formed 377 million years ago in the Devonian by a major meteorite impact.

The project began as a deep commercial wildcat well, and its unusual location in fractured granite attracted scientific attention (e.g., as potentially significant in the context of theory of abiogenic petroleum origin).

Soil in the area showed clear traces of methane and heavy hydrocarbons, with a halo around the ring coincident with vanadium and nickel trace elements; the sediment was shown to not be the source of the hydrocarbons due to their location, ice movement pattern, and low level of maturity.

A black sticky substance was found to be blocking the drill pipe when circulation was stopped for several days at a depth of 5,520 m (18,110 ft).

It contained no ordinary rock minerals, none of the granite fines expected in the drilling fluid, but is made up of microscopic magnetite held together by oils.

The well did not penetrate the fourth seismic reflector, did not produce large quantities of fuel, and never entered commercial production.

Only 84 barrels (13.4 m3) of oil were produced; it was later shown to originate from organic additives, lubricants and mud used in the drilling process.