Austin told the market yesterday it had acquired 100% of the Hughes and Hughes Australia’s working interest in PEL 105, southwest of Innamincka Petroleum’s major Flax-Juniper oil field.

Following the acquisition, Austin farmed-out a 50% stake in the permit to Adelaide Energy, which will also take over as permit operator.

Austin’s managing director David Schuette said Adelaide Energy was working with a geologist and geophysicist to evaluate all available data and select a location for the first well in PEL 105.

“We have been working diligently over the last 10 months to get this arrangement completed,” he said.

“Under this licence, Austin and Adelaide Energy will acquire 150 square kilometres of 3D seismic data and drill one well within the next year and three additional wells by year-end of 2009.”

Covering 437sq.km square kilometres, PEL 105 has five gas fields with some oil discovered. Eleven exploration wells have also been drilled here.

Most of the block has “good to excellent” seismic coverage that has identified large structures and numerous unconformities that could suggest the presence oil and gas accumulations.

The permit is 60km north of the Moomba processing plant.