“Technical work in this quarter has confirmed the initial assessment that these permits have significant petroleum potential from a variety of geological features,” the company said yesterday in its December quarterly report.

In the past, six exploration wells have been drilled in the permit areas and four of those have had oil and gas indications.

Westralian said initial planning for the controlled source electromagnetic imaging (CSEM) geophysical survey has already begun and an environmental impact investigation is underway.

A relatively new geophysical technique, CSEM uses electromagnetic remote sensing technology to detect the presence and extent of hydrocarbon accumulations beneath the seabed.

Usually considered a complement to seismic, the technology offers the promise of fewer dry wells, improved ranking of development prospects, and more accurate or reduced appraisal drilling. It is even being suggested that companies may sometimes be able to go straight from 2D seismic to CSEM without the need for costly 3D seismic.

Located some 90km offshore Perth, the two permits in the Vlaming Sub-basin were awarded in August to a joint venture of Westralian chaired by Peter Briggs and two private companies owned by Cladium, a family company of Perth petroleum entrepreneur and Hardman founder Alan Burns.