The agreement would see Incremental hold interest in more than 19,000 acres in the hydrocarbon region of the basin.

Under the terms of the agreement, Incremental will make initial payments equalling $A7.1 million to acquire between 10% and 50% of each of the projects, and would be operator of the larger equity agreements.

The company would also fund work commitments in the projects of an estimated $A11.2 million over two years. The acquisition and work commitments would be funded through share placement, a share purchase plan, cash at bank and operating cash flows.

Incremental managing director Gerry McGann said the Californian assets would be a fantastic addition for the ongoing growth of the company's global oil and gas business.

"Incremental's strategy to acquire low risk underdeveloped assets, then to apply its proven modern technologies to increase overall production, fits perfectly with the projects identified in the San Joaquin Basin" he said.

"The acreage we have secured in California offers a combination of significant discovered, but not produced, hydrocarbons, and further balance of Incremental's asset portfolio by spreading operational, project and geographical risk, with very strong profit growth potential."

The San Joaquin Basin, one of the major structural features of California, lies between the Coast Ranges and the Sierra Nevada.

The basin's complex geologic history has resulted in the generation and entrapment of several tens of billions of barrels of oil.