MORE gas exploration is on its way for the region, after the State Government awarded tenders to two junior producers for domestic-only production.

Minister for Natural Resources, Mines and Energy Dr Anthony Lynham announced yesterday that Central Petroleum and Armour Energy would develop a total of almost another 400ha just north of Miles and Surat.

Central Petroleum was awarded exploration permits for 77sqkms of land about 28km north-west of Miles, while Armour Energy was awarded permits to explore a 318sqkm area 17km north of Surat.

Central Petroleum managing director Richard Cottee said securing the tenement would help preserve local jobs in Australia's domestic manufacturing sector.

"We fully support the dedication of land specifically for the exploration and production of domestic gas, and the awarding of this tender helps us to further this cause,” Mr Cottee said.

"I congratulate the government on its commitment, increasing local supply will go a long way in ensuring that we can maintain a diversified economy and the jobs that come with it.”

Before work can begin, Central Petroleum and Armour Energy must negotiate land access agreements and fulfil all existing environmental and Native Title requirements.