Santos (STO) has bought interests in two prospective exploration permits in Papua New Guinea.
In a statement, the oil and gas producer said it has agreed with Canadian group Talisman Energy to acquire 30% interests in two permits.
Terms of the agreements are confidential and Talisman will remain the permit operator.
The two groups are in exclusive discussions for Santos to take a 50% interest in a third permit.
Three exploration wells are planned in the permits and drilling for the first is expected to start in early September.
Mitsubishi also has a 40% interest in one of the permits.
The agreements are subject to obtaining PNG government approval.