3D Oil Limited and ConocoPhillips Australia SH2 Pty Ltd have executed a Joint Operating Agreement in relation to the offshore Victorian Permit VIC/P79 which satisfies a key condition of the Farmout Agreement (FOA) announced on 1st July 2022. Completion of the farmout will occur following government approval.

Under the terms of the FOA, the 3D Oil will receive a A$4.841 million cash payment in exchange for ConocoPhillips Australia acquiring an 80 per cent interest in the Permit and operatorship.

In addition, 3D Oil will be carried on the drilling of an exploration well by ConocoPhillips Australia for up to A$56.51 million, after which it will contribute 20 per cent of well costs in line with its interest in the Permit.

The timing of the exploration well under the Permit currently coincides with other potential upcoming activity in the Otway Basin at a time where new gas supply to the East Coast market is critical.

Notably, this farm-in builds on the previously announced agreement with ConocoPhillips Australia SH1 Pty Ltd, to enter T/49P, also as the 80 per cent interest holder.

The 2,576 km2 VIC/P79 permit along with the 4,683 km2 T/49P permit makes the 3D Oil and ConocoPhillips Australia joint venture the dominant title holder on the prospective shallow water Otway shelf.