Under the new timetable, the deadline for the completion of the Year 3 work requirements has been extended for a year from February 11, Karoon said.

The term of the exploration permits has also been lengthened by 12 months to February 11, 2011.

Karoon recently announced it had taken possession of the final processed 3D data from its 284 square kilometre seismic acquisition in permit WA-315-P.

This completes the 2D and 3D seismic data acquisition and processing program run through 2006.

It said the results would be interpreted over the coming months, with full results expected in the second quarter of 2007 and that initial results have already confirmed the position and size of the two leads (Updip Buffon and A Lead) in the survey area.

Looking ahead, Karoon says the joint venture plans to drill two wells, which it expects will lead to drilling activity on the permits within the next 12 months.

Karoon holds 49% equity in WA-314-P and WA-315-P. ConocoPhillips holds 51% and has an option to take an additional 9% of the permits by paying 80% of the next $US125 million ($A158.6 million) of agreed expenditure and 60% of everything thereafter.