Key Petroleum has signed an agreement with Empire Oil & Gas to acquire 100% of Gulliver Productions, a subsidiary of Empire Oil & Gas.

Gulliver Productions’ assets include five exploration and production licences in the Canning Basin of Western Australia, which have several undeveloped and partially developed oil and gas discoveries.

Under the agreement, Empire will receive 52 million ordinary shares in Key Petroleum, representing 19% of the total issued capital in Key Petroleum on completion.

Key Petroleum will also provide Empire with a 22.5% interest in exploration permit EP 437, which is located in the northern part of the onshore Perth Basin.

The five exploration permits include EP 104, EP 438, EP 448, retention licence RL 1 and production licence L 15.