In December, Mosaic said it was preparing to introduce new joint venture partners into the Surat-Bowen Basin to accelerate exploration and development of existing discoveries.

The company said this strategy would accelerate its exploration and appraisal activities at a time of high oil prices.

Under the agreement, Bow will earn a half stake in PL15, excluding the Boxleigh field and Boxleigh North-1 gas well, by funding 100% of drilling a well. Bow has until August 31 to exercise the option and a further 12 months to drill the well, Mosaic said.

Any additional exploration and planning work in the permit up to completing the drilling will also be funded by Bow.

While Mosaic will remain as permit operator, Bow can elect to act as operator of the farm-in well.

In addition, Mosaic said discussions were well advanced with other parties about a potential farm-in to its producing Downlands fields in PL 119 and the Bainbilla Block of ATP 471P.

“The main targets in PL 15 area are the mid-Triassic Showgrounds and Moolayember Formation reservoirs and Bow has experience and recent success in working these reservoirs in the area near PL 15, hence Mosaic sees this as a win-win situation for both companies,” Mosaic chief executive Lan Nguyen said.

Nguyen said this farm-in would accelerate exploration and appraisal of the area, and complement Mosaic’s other Surat-Bowen activities.

He added Mosaic was actively assessing new acreage opportunities as part of its announced business plan for diversification and growth.