Speaking at Karoon’s AGM, chairman Bob Hosking said the Poseidon prospect overlapped its existing WA-315-P permit and the WA-398-P permit, which the joint venture acquired in May.

“The Poseidon prospect previously identified by Karoon straddles both of these permits and the acquisition of the new permit is therefore considered by Karoon to be especially important to the future exploration of the area,” he said.

Poseidon was previously described by Karoon as a low-risk prospect with 3.46 trillion cubic feet and 49-112 million barrels of oil equivalent.

The company has said Poseidon, which is in 480m of water, was the closest analogue of its three-high graded prospects to Woodside's Scott Reef field.

The JV’s three blocks – WA-314-O, WA-315-P and WA-398-P – are believed to be highly prospective for large volumes of condensate-rich gas that could be used to feed an LNG plant.

They are also nearby Woodside’s Terosa development, which has a proven resource of 21Tcf of gas and 300 million barrels of condensate.

Also in the area is Inpex’s giant Icthys field, with 9Tcf and 400Mmbbls of proven resource.

“The Browse Basin has certainly proven to be rich in gas and condensate, which augurs well for the upcoming exploration program,” Hosking said.