As a result, the company now has the minerals exploration rights over the same acreage, located 100km north of Adelaide, as geothermal explorer Torrens Energy.

GulfX said the ‘cooperative area' could potentially see the companies work together down the track.

"What this means for GulfX shareholders beyond securing operational efficiencies in the field is that it opens the door for both companies to work together towards mutually beneficial downstream benefits," it said.

The acquisition of Syngas Energy has given GulfX rights over coal deposits containing 215 drill holes that were drilled between the 1920s and 1980s.

These holes are currently being brought to JORC compliant resource status, with drilling to start shortly.

GulfX said this project aimed to produce diesel, native sulfur and 500MW of power, of which half would be connected to the national electricity grid.

Torrens holds a geothermal exploration licence over the ‘cooperative area', where it is planning to drill to depths of between 400 metres to 600 metres.