Under the agreement, Oilex will fund and operate one well in each permit to earn an additional 44.5% in the Rookwood block of ATP608P and an additional 36% in the remainder of ATP608P by the drilling of Rookwood South-1.

Oilex will earn an additional 36% in ATP593P by the drilling of a well in that permit.

Following the wells, Oilex will have a 65.3%interest in the Rookwood Block of ATP608P and a 76% interest in the remainder of ATP608P, and 76% of ATP593P.

This is the second farmin deal the two companies have concluded this year after Victoria Petroleum signed a Joint Venture Farm-in Agreement concerning its North Giligulgul Prospect in ATP 574P in January, which saw Oilex (OEX) increase its interest from 18.75% to earn up to an additional 38.75% by funding 64.58% of VicPet's share of drilling the North Giligulgul-1 well.

Earlier this month Oilex also completed a farmout deal with Roma Petroleum which will see the company drill the Connolly-1 well in Central Queensland.

Oilex will be earning a 55% interest in ATP 545P with Roma paying $100,000 of the drilling costs, which is intended to take place at the end of the year.

Roma said assuming a 20 metre net sand, the Connolly prospect is large enough to hold potential recoverable reserves of up to 26 million barrels of oil.

The Perth-based Oilex listed last October issuing a total of 13.9 million tradable shares at 20 cents per share to raise $2.8 million. Shares in Oilex rose to 19c before settling back at 17 c in morning trades, while Victoria Petroleum was steady at 2.2c.