The Perth-based company yesterday said it had been granted the Vasse Drilling Reservation DR10 in southwestern Australia, as well as the Shepherd Lease in Burkesville Kentucky.

In WA, the company said it was lodging a drilling application with the Department of Industry and Resources to further investigate a structural anomaly identified in the center of DR10 by a seismic survey in 2005.

Westralian will be free-carried through this drilling by gas-fired power station developer ERM Gas, as part of a farm-in agreement signed earlier this month.

Under the deal, ERM Gas has the option to explore and develop Westralian’s coal seam methane leases in southwestern Australia to supply gas to its regional power stations.

The company and its affiliates had interests in about 1700 megawatts of gas-fired power generation, with several major projects being planned.

Meanwhile in Kentucky, the company has acquired the 650 acre Shepherd Lease, which adjoins its existing Carter lease.

“This lease has only been sparsely drilled with several old wells having recorded over 30 barrels of oil per day,” Westralian said.

“The company believes this to be an exciting acquisition and sees it consolidating its position in the Burkesville area.”

Westralian plans to start drilling on the new lease after it completes a 10-well program, scheduled to start this week.