“The key criteria in the selection of projects are proven hydrocarbon systems, excellent tax regime and obvious commercialisation,” Gas2Grid said in a statement.

“As a first project, the group has selected an onshore basin where total hydrocarbons in place found to date amount to 13 trillion cubic feet of gas and 500 million barrels of oil.

"Commercialisation is obvious as the basin contains major industrial and population centers and is well connected to hydrocarbon infrastructure.

“Exploration in the basin has stagnated for 20 years and the group is confident of the potential of the area.”

Gas2Grid, an oil and gas exploration company with a focus on developing stranded resources, said the study was focusing on an OECD country in Europe, but it was unwilling to say what the country was as competition was keen.

Gippsland Offshore Petroleum are currently earning a 51% interest through drilling in three blocks in the Gippsland Basin.

“The basin has been under-explored by world standards and recent drilling in poorly regarded areas of the basin has resulted in the discovery of hydrocarbons,” Gas2Grid said.

“GOP has particular expertise in the use of the Falcon airborne gravity gradiometer system developed by BHP Billiton and the integration with existing seismic and geological data which has defined the targets to be drilled.”

Gas2Grid aslo has interests in the Philippines' Cebu region, but these are not covered by the new ventures study group.