Australian oil and gas firm Senex has secured a 15-year deal for a 10,000 sq km area in the Cooper-Eromanga basin.
The agreement with the South Australian government will allow the company to convert its exploration licences into retention licences, initially for a five-year period with two further five-year extension periods.
The deal will allow the Brisbane-based firm to accelerate its $200million exploration and appraisal programme for the region.
“This is a big step toward the granting of licences that will bring forward about $200 million in exploration and appraisal expenditure as part of a 15-year exploration program,” said South Australia premier Jay Weatherill.
“South Australia has vast reserves of oil and gas waiting to be unlocked which will lead to significant future jobs and investment.
“Senex joins Santos, Beach Energy, Chevron, BP, Statoil, Northern Petroleum and others in strengthening their commitments to South Australia’s oil and gas industry.”