Under the deal, BPC will pay $US1.42 million ($A1.82 million) to cover the costs of previous 3D seismic purchase, processing, interpretation and other works in return for a 20% interest in the licence.

BPC also has the first right to take any additional interest offered by the JV partners in exchange for a promoted share of the drilling costs of the next exploration well.

Perth-based Norwest said if BPC decides to decline any such offer, the original parties are free to then seek other farm-in parties.

The licence terms require one well to be drilled in the 12-month period beginning May 27, entry into which will be optional for all parties.

Following the farm-in, interests in the JV will be operator Coogee Resources with a 24.64% stake, Westranch Holdings, a fully owned subsidiary of Norwest (24.08%), Adelphi Energy (18.48%), Bounty Oil and Gas (12.8%) and BPC (20%).

Norwest said over the last six months Coogee has led the interpretation work on a 3D seismic database, which covers the entire licence area.

Other JV partners have also conducted review work and as a result, a number of substantial and exciting prospects are currently undergoing final interpretation and ranking.

“The block is surrounded by oil and gas discoveries and fields which are either producing or planned for development, and as such, is in a very promising but under-explored area,” Norwest said.