Under the agreement, Stuart said it would drill the eighth well in the consortium's sequence in its role as operator of Gippsland Basin permit Vic P53.

The consortium was organised by Australian Drilling Associates, a firm that specialises in one-stop offshore drilling project management.

Lead operator, Apache Energy, plans to drill three wells in its Gippsland permits. The other participants with one firm well each to drill in the region are Nexus Energy, Beach Petroleum, Oilex and newcomer 3D Oil.

Stuart said the West Triton rig, owned by Seadrill Management, was being fitted out in Singapore.

It is expected to arrive in offshore Victoria waters in February, with Stuart expecting to spud its first well, Bazzard-1, in Vic P53 in September.

Stuart will sole-fund the cost of Bazzard-1 to earn a 50% participating interest in any discovery area.

The company is entitled to earn a 50% stake in the whole permit by sole-funding a second well.

Other partners in the Bazzard-1 project are Cue Petroleum with a 25% stake, Exoil with 16.667% and Moby Oil & Gas with 8.333%.