The Canning oil and gas basin stretches across half a million square kilometres of northern Western Australia, from an area offshore the West Kimberley coast to inland near the Northern Territory border. Gas production may require hydraulic fracturing, or fracking.
The green light for Black Mountain Energy comes just months after Federal experts said its environmental risk assessment was "limited and disjointed" and reached "largely unsupported" conclusions.
Black Mountain's conclusion that its drilling will not affect water resources is without foundation, and threatened species and National Heritage are at risk, according to the Federal environment department.
Andrew Forrest's Squadron Energy is pulling out of plans to frack the Kimberley for gas citing climate concerns, but the minor partner may continue the work.
