The 6800 square kilometre permit extends both north-west and south of Onslow, and south of the Tubridgi Gasfield.

Empire told the ASX yesterday that EP444 was prospective for large pools of migrated oil trapped on the margin of the basin within Cretaceous-aged reservoir sandstones.

This oil prospectivity was first observed in the mineral percussion hole OND-1 drilled in 2001, which encountered significant live oil shows from the prospective Cretaceous-aged sedimentary section, according to Empire.

The mineral exploration company observed globules of live oil at a depth of 220-280m while drilling for deeper mineral objectives in the underlying metamorphic basement rocks.

Empire said it has completed an evaluation of these live oil shows and the OND-1 drill hole.

“The live oil shows recorded provide evidence that oil has migrated to the Carnarvon Basin Margin and that the potential exists for large-scale shallow oil accumulations within the EP444 Permit,” managing director Craig Marshall said.

The company, which has 100% equity in the permit, said it could now progress discussions with potential farm-in partners.