The two concessions together cover an area of 13,000ha in the unexplored potential Tarakan Basin coal region. Killara is expected to pay $1m initially and another $1m after the required exploration permits have been obtained.
The company expects to begin field evaluation over the next seven days.
As part of the field mapping program, Killara will complete general reconnaissance mapping, locate coal outcrops and collect structural data and representative samples of coal occurrences.
Detailed mapping will be conducted subject to the results to identify areas for future drill testing.
Killara executive director Darren Misquitta stated, "Our relationships in Indonesia are strong and we look forward to engaging in additional projects on behalf of the company in due course."
