Headquartered in Texas, Discovery Geo as operator announced it had been formally awarded the rights to explore for and produce oil, gas and other hydrocarbons in the ATP-634P permit held in partnership with Brisbane-based Tamark and fellow Texan business CG Operating Inc.

The JV first applied for the permit in August 1996 and four months later was pronounced the ‘preferred explorer’ by the Queensland Department of Mines and Energy.

However, the partners were indefinitely blocked from being formally awarded the permit as a result of native title claims.

After negotiations and ultimately hearings before the Native Title Tribunal, the Federal Court denied the native title claims in February this year therefore clearing the way for Discovery Geo to start exploration in the permit.

Covering 3885 square kilometres, ATP-634 contains 3540km of 2D seismic data shot from the1980s to early 1990s.

Discovery said it had identified multiple geological structures in the acreage worthy of further exploration.

Surrounding oil and gas fields in the region have collectively produced close to 70 million barrels, the company said.

“Discovery and its partners, Tamark Pty Ltd in Brisbane, Australia and CG Operating, Inc in Austin, Texas are obviously excited about the award by the Queensland Government and are confident that the potential for discovering oil and gas reserves is high,” Discovery president Bernett Martin said.

“After over 10 years, our work and patience has finally been rewarded. We plan to hit the ground running directly after the January 1, 2008, commencement date.”