An exploration well is currently being drilled on the Parrot Hill prospect in one of the permits, EP-435.

Black Fire, which is offering 17.5 million shares at 20c each, plans to list on the Australian Stock Exchange on April 23.

In its prospectus, the Perth-based company warned that it was a “highly speculative” investment, because it was at such an early stage of exploration.

However, chairman David Steinepreis said Black Fire’s board brought together a “strong combination of experience and expertise”.

Black Fire is earning stakes in three onshore permits by helping pay for the cost of drilling a well in each of them.

“In addition to existing projects, Black Fire will review other acquisition and joint venture opportunities to secure new projects in the energy and resources sectors,” Steinepreis said.

It will earn a 10% stake in both Carnarvon Basin permit EP 435 and Perth Basin permit EP 426 by contributing to the Parrot Hill-2 and Moriary-1 wells, respectively.

In addition, it will acquire 7.5% of EP439, in the Carnarvon Basin, through the drilling of Lake Macleod-1 in the second half of the year.

All three wells are operated by Empire Oil and Gas, which has been the main stayer in the onshore Carnarvon over the past decade, persevering in the face of early disappointments to commercialise the original Rough Range oil discovery and trying to find a key to the frustrating run of dry holes in the surrounding area.