AGL Energy Limited (AGK) said it had acquired permit interests from Innamincka Petroleum Limited (INP) in the Cooper Basin. The company said its $15 million cash payment would acquire a 35% interest in two regions near the Queensland and South Australian border.

The sale, funded from AGL's cash reserves, would also include a commitment to a $10 million works program, the company said. AGL said the project would be aimed at evaluating a recently discovered coal seem gas ("CSG") prospect.

The company also said it had entered into a ten year gas marketing agreement that would give AGL exclusive rights to market the gas accumulated on behalf of all joint venture participants.

AGL managing director Michael Fraser said the company would also look to combine the gas form commercialisation with other gas fields nearby.

"This farm-in deal provides AGL with the opportunity to evaluate a new CSG prospect located in the Cooper Basin in close proximity to the soon to be commissioned QSN Link pipeline in which AGL holds substantial gas transportation capacity rights," he said.

AGL said it estimated its share of recoverable gas in PEL 101 and PEL 103 would be approximately 30Bcf.

At 1214 AEDT, AGL were down 15c to $13.70, while Innamincka Petroleum was up 4.5c to 29c.