The WA-340P permit, located on the southern boundary of the Dampier sub-basin and 35km northwest of the Burrup Peninsula, was granted for a period of six years to Strike Oil NL 40% - operator, Sun Resources NL 20%, Victoria Petroleum 20% and Pancontinental Oil & Gas 20%.

Pancon chief executive officer Andrew Svalbe said the recognition of a number of leads, trending south-westwards across the WA-312-P permit boundary into WA-340-P was the prime motivation for acquiring the permit.

"In addition, a number of leads were also recognised within the application area," Svalbe said.

"Work over the next three years will utilize remote sensing and seismic techniques to further evaluate these attractive and interesting leads in order to mature them for early drilling."