Bass Strait Oil Co. has pieced together a major acreage portfolio over the central Victorian sector of the onshore Otway basin in Australia with a holding of 2,315 net sq km (894 sq miles).

The Victorian Department of Primary Industries notified the company that it was successful in its application for the 2011 acreage release block Vic/O-11(1). The department will grant the permit, to be known as PEP 175, to Bass subject to the company completing the future act provisions of the Native Title Act 1993 within two years.

The area lies in the central northern part of the Victorian sector of the onshore Otway basin and covers parts of the Tyrendarra Embayment, the Koroit Trough, the Morenda Trough, and the Killara Trough. It encompasses 21 graticular blocks and covers 1,419 sq km (548 sq miles). The blocks contain conventional and unconventional resource trends, but primarily address the Casterton unconventional play.

The company also was granted a new five-year renewal term, commencing July 2, for exploration permit PEP 167. The company relinquished the western area of the permit as its aim is to hold the most prospective area in the east which also primarily addresses the Casterton unconventional play.

The final part of the portfolio has been finalized with the signing of a farm-in agreement with Somerton Energy (Cooper Energy) for a 15% interest in PEP 150. This permit lies to the west of PEP 167 and 175. The grant of PEP 150 is contingent on entering an agreement with native title claimants. The operator has indicated that these agreements are expected to be signed during the second half of 2012.

The permits straddle the main gas pipelines which deliver domestic gas to the markets of South Australia and Victoria. Due to the interconnectivity of the gas pipeline network in eastern Australia any gas discovery can be quickly commercialized. The area consists of easy terrain with good all-weather road access. PEP’s 150, 167 and 175 also benefit from local infrastructure and a relatively short transport distance via sealed highway to the Geelong refinery.