Under the agreement, Cooper Energy will earn a 10% equity in the well by funding all of Enterprise’s well costs. In total, Cooper will pay A$360,000 – $180,000 for 10% equity share and another $180,000 for Enterprise’s 10% free carry.

Cooper said based on near-ology and Cooper Basin oil migration patterns, Fairbridge could be the best prospect in the basin.

"Fairbridge lies close to the Keleary and Telopea oil fields and is on the spill path of both fields," managing director Michael Scott said.

If the exploration well makes a discovery, Cooper Energy will hold 38.33% of the Fairbridge prospect.

Following Fairbridge-1, Cooper Energy also has the option to fund all of Enterprise Energy’s 20% interest in the next PEL 100 well - Strickland Bay-1 - for 10% equity in the whole of the permit.

The Fairbridge prospect has assessed recoverable oil volumes of 3.3 million barrels on an undiscovered P50 reserves basis.

Reducing its commitment to PEL 100 will allow Enterprise to participate in drilling more wells, managing director Warren Leslie said.

“This farmout will strengthen Enterprise’s capital position and will allow the company to pursue new exploration opportunities in prospective areas, some of which are currently under technical review,” Leslie said.

Fairbridge-1, previously called York-1, underwent a name-change to avoid confusion with similarly named wells elsewhere in Australia.

Cooper Energy is currently negotiating to secure a drilling rig for Fairbridge and Strickland.