The acreage commands the bulk of the remote Beetaloo Basin midway between Alice Springs and Darwin. There has been 11 wells, primarily stratigraphic tests, drilled in the late 80s to early 90s on the permits.

The portfolio was one of the more curious offerings on Sunday’s PESA Farmin Seminar, showcasing an Australian Basin many experienced explorationists in the room had never previously heard of.

“Few, if any, of the wells were located with reference to seismically defined structural closures. Nevertheless, oil shows have been reported in several of these holes and free oil has been reportedly recovered on test,” said Roc.

If Roc exercises the option, which runs to mid-June, the final equity structure will be determined by the size of the subsequent exploration program.

As a result of fulfilling a minimum work program, consisting of 330km of 2D seismic and an exploration well, Roc will earn a 50% interest in three of the permits and a 75% interest in the fourth permit in which the well is drilled. The preliminary cost estimate for such a program is A$3 to 4 million.

The deal lets Roc earn further interests in all four permits by operating and funding up to seven additional wells.

Roc said it had paid about US$50,000 to Sweetpea as a partial reimbursement of the company’s past costs.

If the farmin is fully completed Sweetpea will retain a 12.5% working interest in each of the four permits plus a 5% overriding royalty.

In some parts of the world the seven million acres involved in the transaction would, perhaps, impress; but, in Australia we have a healthy cynicism about such things and fully realise that a big, pure exploration acreage position is, not in itself, of any immediate value – although it does come in handy when a discovery is made.”