Empire Oil and Gas has signed a Letter of Intent (LOI) with drilling contractor Enerdrill.
The agreement is for the upcoming planned three-well programme at the onshore Perth Basin.
The company said one of these is planned to be within Permit 389, which hosts Empire’s Red Gully Gas and Condensate project.
The locations of the two remaining wells are set to be determined after Empire has reviewed the results of the geophysical survey, which it said will be flown across all its tenements in the onshore Perth Basin.
A spokesman said Empire will now continue to work with Enerdrill to have drilling concluded by the end of January 2015.