The tenements, which are still in the application phase and are yet to be granted, are ATP 661P, ATP 820P and ATP 636P.

Sundance said 1779 square kilometre ATP 661P is immediately north of the South Australian/Queensland border. Its southern boundary is about 270km north of Moomba and about 170km northwest of the Ballera gas processing plant.

The 607 sq.km ATP 820P licence comprises two blocks 14km east of the Jackson field – one of Australia's largest onshore oil fields – and is also close to several smaller fields, according to Sundance.

ATP 636P is about 2590 sq.km and roughly 60km east of Jackson on the Harkaway Anticline Trend.

Sundance said Liberty Petroleum has made applications for the ATP 661P and ATP 820P grants to the Queensland Government by and are subject to the satisfactory completion of native title negotiations.

Application for the grant of ATP 636P has been made by Strategic Consulting & Administration, a company associated with Liberty, and is also subject to native title negotiations.

Sundance said it has a right to acquire a 100% interest in ATP 661P and ATP 820P from Liberty, and a 90% interest in ATP 636P from Strategic, which will retain a 10% interest.

Under the farm-in agreement, Santos will become operator responsible for the various farm-in programs, including all geological and geophysical studies and the drilling of any agreed-to subsequent wells.

Phase 1A of the ATP 636P and ATP 820P farm-in program covers the completion of the native title negotiations, while phase 1B covers the analysis of existing seismic and the acquisition, processing and interpretation of up to 500 km of additional seismic.

Sundance said this additional seismic will be funded by Santos as part of the deal and is expected to be about $3 million. Santos is entitled to earn a 30% interest in each tenement once these two phases are completed.

Phase 2 of the farm-in program covers the drilling of an initial exploratory well in each tenement, which will be undertaken at Santos’ expense.

Santos is entitled to earn a further 30% interest in each tenement upon successful completion of Phase 2.

Once all phases are done, the participating interests of the farm-in program for ATP 636P will be Santos with 60%, Sundance (36%) and Strategic (4%.) For ATP 820P Santos will hold 60%, Sundance (40%) and Liberty (0%). Interests in ATP 661P will be Santos (60%), Sundance (40%) and Liberty (0%).