Cockatoo on Tuesday completed the acquisition of 816 square kilometres of exploration permits in the basin for $A3 million.

EPCs 796 (Horse Creek) and 813 (Dogwood Creek) are contiguous with Cockatoo's existing exploration tenements.

Cockatoo said its existing portfolio of Surat Basin tenements was highly prospective for potential development of opencut export thermal coal operations of significant capacity and will be the focus of a detailed evaluation program.

Exploration will cover 150km along the Surat Basin from near Oakey in the southeast to near Wandoan and Cockatoo's existing Guluguba project in the northwest.

Cockatoo is currently increasing its drilling and exploration capability.