The permit lies between 90 to 240km east of Broome and encompasses the north-eastern part of the Collins Creek Sub-Basin, which also covers the eastern part of application area 5/97-8 and the northern part of EP 391.

The only valid well drilled so far in this sub-basin is Yulleroo-1 in EP 391, drilled on the margin of a large structure, the Yulleroo Anticline, which on test recorded a small flow of wet gas.

“EP 428 contains approximately 40% of the Yulleroo Anticline,” Kimberley Oil said in a statement.

“Adjacent to this prospect, the EP 428 portion of the Collins Creek Sub-Basin also contains four other large structures with similar prospectivity to Yulleroo.”

The Collins Creek Sub-basin lies within the Fitzroy Trough, itself a major unit within the Canning Basin. This sub-basin contains a thick sequence of marine deltaic shales and intercalated sands in the Carboniferous Laurel Formation which has only been validly tested by Yulleroo-1.

“Deltaic sand shale systems are recognised worldwide as providing the necessary conditions for major hydrocarbon accumulations,” the company said.

“The Yulleroo-1 well has proved the existence of moveable hydrocarbons in the sub basin as well as excellent source rocks and adequate reservoir.”

Kimberley Oil said it has begun a detailed review of the existing seismic data within the permit. It was also in discussions with several parties on a joint venture and the drilling of an appraisal well on the Yulleroo structure 2.5 kilometres south-southeast of the discovery well and within EP 391.