Ann: Letter To Shareholders, page-111

It means permeability is too low at PS3 to flow despite the high pressures found by PS2.

Flow requires both pressure and permeability - force to push and holes to push through. Hydrocarbon saturation also needs to reach a certain level in the pore space to flow hydrocarbons, because hydrocarbons and water don't mix well. And hydrocarbon saturation tends to be lower in low permeability rock.

So tight rock and low hydrocarbon saturation mean no oil or gas flow. On top of that they were control drilling and probably a fair bit overbalance (to prevent well control issues like in PS2) so they quite possibly damaged the formation with drilling mud. The core analysis should at least show if that happened because there will be mud invasion in the core.