The two companies will earn their interests by partly funding the drilling of a well in the permit on promoted terms.

Once the farm-ins are finalised, the PEP 150 joint venture will comprise Beach Petroleum, as operator with a 50% interest, Essential Petroleum with 20%, while Inland and Bass Strait will each hold 15%.

In April, the two companies farmed-in to earn a 25% interest each in PEP 151, by partly funding the drilling of the Pritchard-1 oil exploration well. But the Otway Basin maintained a 139-year oil discovery drought, when the well failed to encounter oil at its primary target.

But at the time, Essential said the well had confirmed the presence of an active hydrocarbon system in the Lower Sherbrook Formation.

With these farm-in obligations now met, Bass Strait and Inland Oil have been awarded a 25% interest in the PEP 151, with Essential holding the remaining 50% stake.

Essential, which holds the remaining 50% stake in PEP 151, described Inland Oil as a leader in oil field development and production in remote onshore locations.

“IOR’s considerable skills in downstream activities will be invaluable to both joint ventures,” managing director John Remfry said.

“EPR also acknowledges the sound technical skills and considerable Otway Basin experience of the Bass team.

“The Bass and IOR farm-in to PEP 150 and PEP 151 endorses the significant contribution Pritchard-1 has made to understanding the hydrocarbon potential of the Late Cretaceous Discovery Bay High and Tertiary Portland Trough.”