The aim is to find acreage that will provide reserves and short term production with an opportunity for upgrades over the longer term, Mosman said.
Blackstone Oil was originally formed to invest in California oil and gas opportunities and has since expanded to become a workout and turnaround specialist for distressed oil and gas companies.
It specialises in restructuring, financing, and asset acquisition and working with companies both before and throughout the bankruptcy process.
Blackstone is now expanding its portfolio outside California in to other areas of the US and in particular Texas.
Mosman said it would also individually pursue parallel projects in both the US and internationally, some of which are at a technical due diligence stage and remain under ongoing review.
Any participation in Blackstone projects will be funded from the current liquid assets being cash or investments, said Mosman.
John W Barr, chairman, said: "The Strategic Alliance to consider the acquisition of reserves and production opportunities, initially in California, enhances the Board's strategic objective to identify opportunities which will provide operating cash flow and have development upside, in conjunction with the current exploration work on our existing exploration permits.”