In a statement, Acting Minister for Mines and Energy Elliot McAdam said Traditional Oil Exploration had proposed to spend $8 million on the three permits covering 20,852 square kilometres of the Eastern Amadeus and Western Pedirka Basins over the next five years.

“This is the same geological region as the Palm Valley and Mereenie oil fields,” McAdam said.

“The areas are lightly explored but are considered to have high potential for successful exploration.”

The three permits lie to the east of the Dingo gas field, which is about 100km south of Alice Springs.