OILEX has entered into a farm-in agreement with Kimberley Oil, covering EP390 in the Canning Basin.
The agreement entitles Oilex to earn an 80 per cent interest in the permit by undertaking reprocessing and reinterpretation of seismic data covering about 35 kilometres and by drilling an exploration well on the permit.
The planned well should confirm whether a 40 million barrel of oil-in-place resource exists.
It is estimated about one quarter of that should be recoverable.