Icon Energy, Rawson Resources NL, Eagle Bay Resources NL and Rough Range Oil will all hold a 25 per cent stake in the permit, which has a term of six years.

One of the stakeholders, Icon Energy, said the permit is in a geological setting which is up-dip and shallow to the Browse basin to the northwest. "The numerous oil seeps in the area and structural trap indications are the primary reason for Icon's interest. The tender was prepared on the basis of existing seismic and other geological data," the company said.

Drilling is planned for in the fourth year of the permit work program. Rawson Resources NL will be the operator for the first two years.