The permits cover 7800 sq.kms and are located offshore about 150km west of Darwin. The permits adjoin the permit where Woodside made a substantial gas discovery last year at its Blacktip-1 well.

"Interpretation on the new high resolution seismic data so far has very significantly upgraded the potential to discover hydrocarbons within a number of major prospects and leads in the permits," Drillsearch said.

"Those prospects and leads at the carboniferous interval have indicated potential original oil in place (OOIP) in individual leads of between 265 million to 2.3 billion barrels. Leads at the Permian interval have indicated potential OOIP in individual leads of between 72 and 285 million barrels."

Drillsearch said interpretation work and acquisition of additional trade seismic is continuing.