Empire Oil and Gas has sold off its assets in the onshore Carnarvon Basin to Bounty Oil and Gas.
An indicative agreement has been signed to sell the remaining acreage in Western Australia.
It said the exit from the onshore basin would allow it to focus all its future drilling funds on the Perth Basin while retaining full royalty rights.
Empire will sell its subsidiary company, Rough Range Oil, which holds its six remaining Carnarvon Basin tenements for a small cash sum and royalty based payments on future production.
Interest in the tenements will range from 36% to 90%.