Endocoal said the tenements, located in the lesser explored areas of the basin, could hold thermal and coking coal properties.

Endocoal will combine regional geological research and suitable pre-drilling exploration techniques at the three tenements, which has been a proven technique in discovering thermal coal deposits at Orion Downs.

Drill site planning is also underway for the area, following a geophysical survey which identified prospective areas for drilling.

Endocoal chief executive officer Tim Hedley said exploration on the new tenements was in line with the company’s aim to build a varied resource portfolio.

Hedley said the company planned to start scout drilling at Essex and Springton prior to the end of 2011.

“With some good fortune, this should allow shareholders to be updated in late Q1 2012 on their prospectivity,” he added.

Endocoal owns a number of tenements in Queensland and New South Wales including its Meteor Downs South thermal coal mine, which is predicted to be in operation by 2013.