The company said the grant, which will be paid out over two years, will allow it to complete the development of the CLI system without additional funding.

"The Australian Government is a strong supporter of research and development projects that have the potential to be commercialised and make their mark in Australia and on the international stage," Federal Resources Minister Ian Macfarlane said.

AusIndustry is the government's agency for delivering products, services and information that support industry, research and innovation.

Coretrack claims its CLI technology will globally challenge the oil and gas sector's traditional core drilling techniques, as it improves the accuracy of taking core samples during drilling and development of oil and gas wells.

More than $650 million per annum is outlaid by the global oil and gas sector to obtain core samples to carry out reserve and production estimates.

The company plans to target the coring services sector of the oil and gas sector, onshore and offshore, domestically and internationally.