Bow told the market this morning that the two companies would earn stakes in the permit, by fully funding the costs to acquire at least 300 square kilometres of new 3D seismic and drill seven wildcats.

This work program will be undertaken over the Wompi and Barta blocks.

In the Wompi Block, the joint venture will drill four oil exploration wells and shoot 200sq.km of 3D seismic.

In the Barta Block, three oil exploration wells will be drilled and at least 100sq.km of 3D seismic acquired.

Once the farm-in is completed, Bow said it would retain a 15% stake in the permit.

Santos will take over as operator of ATP 752P, with the initial two farm-in wells – one in each block – planned to begin early in 2008.

Bow said Santos has indicated it would prefer to drill an additional well in each block while the rigs are in the area, depending on an internal technical review of the seismic data.

In other company news, Bow said a three-well exploration on its Don Juan coal seam methane project, in which the company has a 45% interest, was due to begin next week.

Other partners in the project are Victoria Petroleum and Roma CBM.

Bow plans to case and suspend the wells for production testing to prove the potential for commercialisation and, if feasible, fast track the project’s reserve certification.

The Don Juan CSM project area is 40km north of Roma and adjacent to Sunshine Gas’ Lacerta CSG Project.