The agreement entitles Oilex to earn an 80% interest in the EP 390 permit, located about 100km south of Broome, Western Australia. Oilex is required to reprocess and re-interpretate seismic data covering approximately 35 kilometres, then drill an exploration well.

The planned well would be about 1100 metres and was designed to test the Grant Formation at the Chingal prospect, but this was subject to the re-interpretation of the seismic, according to Oilex director and company secretary Max Cozijn.

“There are several similar targets in the vicinity of Chingal and final assessment of the seismic may result in this initial well being drilled on one of these structures,” Cozijn said.

“The Chingal group of structures show good closure at the Grant level and are sited in the immediate vicinity of a strong fault/fracture system which is inferred to provide a good migration pathway from older source rocks to the Grant reservoir.”