Carnarvon told the market this morning it would have a 32.5% stake and act as dual operator with Enovation Resources to undertake a geological and geophysical program to evaluate the block’s petroleum prospectivity.

The consortium, which involves Natuna Ventures and PT Gema Terra, has six months to complete the studies, after which it can apply for a production-sharing contract.

The study area is in offshore Indonesia’s “highly prospective” yet “under-explored” North West Natuna Basin, Carnarvon said.

It is also northeast of the prolific oil and gas provinces of the West Natuna and Malay Basins, and southwest of the recent oil discoveries in the southern part of the Nam Con Son Basin, Vietnam.

“The establishment of a study licence over this area enables Carnarvon to fully appraise the potential of this large area before committing the company to a significant work program,” Carnarvon said.

“It will also enable the joint venture to tailor a work program as part of a PSC with the government to best suit exploration of the area.”

Carnarvon added it was in the final stages of evaluating several other international growth opportunities.