The permits are noted as application numbers W00-26, W00-27 and W00-30 and cover a total of 7800 sq km.

The company said its initial focus will be on W00-30, where the Leseur-1 well was drilled in 1980. "The well encountered a 112 metre residual oil column within the Permian Age Kealing Formation and oil and gas columns in the early Carboniferous, Milligans Formation," Drillsearch said.

One structure designated PS-A within W00-30 has three stacked reservoirs with potential oil in place of 750 million barrels. "It is located close to the Leseur-1 well. The presence of live and residual oil in Leseur-1 indicates that oil was generated in the Petrel Sub-Basin and appears to have migrated south/west into the areas covered by Drillsearch Energy's permits," according to Drillsearch.

This area is known as the Lacrosse Terrace. The permits adjoin permits with substantial gas discoveries including Blacktip, Petrel and Tern. The Blacktip discovery was made by Woodside Petroleum in July, 2001. The initial program for the areas will involve obtaining new seismic data.