One Japanese company helping the cause is Mitsui & Co, which through its subsidiary, Wandoo Petroleum, has already farmed into eight exploration permits off the WA coast and is now looking to expand its portfolio on the eastern seaboard.

Last year, Wandoo Petroleum entered into a strategic alliance with Sydney-based Novus Petroleum while this week, Australian Worldwide Exploration announced the Japanese giant will take a 7.5% stake in the Yolla gas and condensate field and a 12.5% stake in the White Ibis gas and condensate field.

This means the Mitsui portfolio now covers the breadth of the Australian continent.

AWE managing director Bruce Phillips said the transaction not only had the benefit of reducing its commitment to BassGas to $135 million but it would also give AWE the flexibility to pursue other exploration opportunities and fund production at its recent Perth Basin oil discoveries at Cliff Head and Jingemia.

"AWE is now fully funded for the BassGas Project, Jingemia and Cliff Head without having to revert to shareholders for additional capital," Mr Phillips told energyreview.net.

The Origin Energy-operated project will provide a rival source of gas for the Victorian market to ExxonMobil's and BHP Billiton's long-running Bass Strait operations.

"Having a company of the calibre of Mitsui buying into BassGas is a significant vote of confidence in the project," Mr Phillips said.

AWE's shares rose 1c to finish at 84c after the announcement.