The company’s managing director, John Remfry, said the company has agreed to acquire Origin Energy’s interests in PEP 152 and PEP 159 for a small cash consideration.

Essential Petroleum will also become the operator of both these permits with new holdings of 84.41% in PEP 152 and 100% in PEP 159.

Last year the company drilled the Koroit West-1 and Banganna-1 wells in PEP152 and although both wells failed to intersect commercial hydrocarbons the results are being incorporated into further seismic mapping of the permits.

In addition to these acquisitions the company has increased its interest in PEP 150 to 50%.

“This outcome is good for Essential Petroleum and for Origin Energy, promoting more rapid exploration in the onshore Otway Basin by Essential Petroleum, whilst allowing Origin to focus on the development of its major discoveries in the offshore Otway Basin,” Remfry said.