Jason O'Halloran says he's confident of battling at the front in wet or dry conditions but is relishing rain at Knockhill after missing out on pole position by the narrowest of margins to Shane Byrne.

The Honda Racing rider acted as Byrne's closest challenger in the pole shootout and despite a last-lap improvement missed out on his maiden BSB pole to the Be Wiser Ducati rider by 0.001s.

Despite the disappointment O'Halloran was still satisfied with his qualifying performance and is relishing the opportunity to attack off the middle of the front row.

"Two laps from the end I had to pass someone which put me off a bit and I thought I was going to get the chequered flag at the end of the lap but I managed to get through," O'Halloran said. "So I went for it again and saw 51.3s on the board and it was the same for the pole time.

"My whole in-lap I was half getting ready to be happy. Still, first time on the front row here and ready to race tomorrow."

After hitting small issues with his Honda CBR1000RR in the dry, the Australian rider says the wet weather played into his hands in qualifying and looking towards race pace feels the slippery conditions would benefit Honda over its rivals.

"I might do a rain dance tomorrow!" O'Halloran said. "I'm happy either way. I'm happy in the dry even though in Q1 we were a little bit down with a couple of issues but I think we can still improve in the dry still.

"If there is rain I think we are okay in the front group. I had a really good feeling straight away in the rain so I felt comfortable to push."