The proposal is for an offshore exploration drilling programme for petroleum within permit areas EP 341 and EP 364 which lie offshore and to the north east of the town of Onslow. This proposal seeks environmental approval for the drilling of an unspecified number of exploration wells within the permit areas. At this time two wells to test two targets have been outlined; near Lightfoot Reef, north of Large Island, and north of Passage Island.

The permits lie within a Special Protection Locality (SPL) as defined in Department of Conservation and Environment (now EPA) Bulletin 104. This area is regarded as being environmentally vulnerable to any oil spills.