Moby has previously said that the block is prospective for oil.

"Considerable scope remains within the Vic/P45 Permit for the location of medium size oil prospects within the Latrobe Group," Moby said last year when Exoil farmed into the block.

"The Neptune/Trident and Errol leads have been identified by Exoil as hydrocarbon attribute plays."

Under the new agreement, Moby and Exoil will transfer an aggregate 66.67% interest in Vic/P45 to Apache, reducing Moby’s interest to 16.67%, with Exoil holding the remaining 16.67%.

In return for the transfer, Apache will meet 100% of the costs of the first well to be drilled in Vic/P45 and 100% of the costs of the second well to be drilled in Vic/P45.

However, Apache can withdraw from this commitment after drilling the first well by reconveying the whole of farm-out interest (66.67%) to Moby and Exoil. Any discovery location will, at Apache’s discretion, be excised from any such reconveyance.

In addition, Apache has undertaken to assume its share of royalty obligations to third parties.

Upon approval of the transaction by the regulatory authorities, Apache will become operator of Vic/P45 and will, in conjunction with Moby and Exoil, select a drilling location for the first well. This well is planned to be drilled once a suitable rig can be procured.