Federal Resources Minister Ian Macfarlane said the new permits, all in Commonwealth waters, would be jointly administered with the respective State Governments.

"The exploration work done under these permits will significantly improve our understanding of the petroleum potential of southeast Australia. There is a good chance of finding petroleum and the already existing infrastructure would help with the early development of any discoveries," Macfarlane said.

Two of the permits are adjacent to major producing oil and gas fields in Victoria's Gippsland Basin. Previous work has revealed the presence of petroleum, but explorers are yet to make a commercial discovery.

Exploration Permit Vic/P55 has been awarded to a consortium comprising Basin Oil, Santos Offshore and Diamond Gas Resources. The group plans to carry out 3D seismic surveys, geological and geophysical studies over a 100sq.km area.

Exploration Permit Vic/P56 was awarded to Nexus Energy Australia, which will carry out three years of seismic reprocessing and studies on top of sinking a well at an estimated cost of $11.55 million.

The third area, EP T/35P, is in a lightly explored area of the Otway Basin between Victoria and Tasmania lying in deep waters to the south west of the commercially important Thylacine and Geographe gas discoveries.

A venture between Santos Offshore and Unocal South Australia was awarded the rights to the permit and plans to carry out 2D seismic surveying, geological and geophysical studies of almost 1300sq.km.