The permits are about 600km northwest of Gladstone. They cover more than 13,000 square kilometres and are in the eastern part of the basin.

Thick Permian-aged coals, similar to those being developed for coal seam gas in the Bowen Basin to the east, underlay much of the area, and oil and gas shows have been recorded in several oil and gas wildcats.

Under the farm-out agreement, Clark will carry Comet Ridge through a multi-year seismic and drilling work program on both permits.

Under the terms of the agreements, which are subject to Clark Oil successfully listing on the Australian Stock Exchange later this year, Clark Oil can earn up to 40% in both permits via a staged work program and up to 75% in a 64sq.km block surrounding any well drilled.

Clark Oil will also lead negotiation of land access and cultural heritage management agreements with registered Native Title claimants over the permits.