Melbana Energy (ASX:MAY) said that the National Offshore Petroleum Titles Administrator approved a variation of the minimum work requirements for permit year 4 of petroleum exploration permits WA-544-P and NT/P87 in the Joseph Bonaparte Gulf offshore northern Australia granted to the firm in 2020, according to a Tuesday Australian bourse filing.

The approved changes include the removal of the acquisition of a 300 square-kilometer 3D seismic survey from the permit year 4 work program conditions for WA-544-P, the removal of the acquisition of a 400 square-kilometer 3D seismic survey from the permit year 4 work program conditions for NT/P87, and the undertaking of geological and geophysical studies and well planning.

The firm has until May 23, 2027, to complete geological and geotechnical studies, including well and operational planning, before deciding whether to progress to drilling one exploration well by May 23, 2028.

Melbana and its advisors are running a process to identify parties interested in funding an exploration well in return for receiving an interest in the permits.

The firm's shares fell 6% on market close.