3D Oil Limited has completed the farmout of the T/49P project, located in the eastern offshore Otway Basin in southeast Australia, to ConocoPhillips following approval by the National Offshore Petroleum Titles Authority (NOPTA). As a result, ConocoPhillips will hold an 80 per cent interest in the Permit and become operator.
3D Oil will receive a A$5 million cash payment in recognition of previous permit expenditure and ConocoPhillips will undertake the acquisition of a 3D seismic survey of not less than 1580 sq km within the Permit.
Upon completion of the acquisition, processing and interpretation of the 3D seismic survey, ConocoPhillips may elect to drill an exploration well which will fulfill the current Year 6 work programme obligation.
In the event ConocoPhillips elects to drill the exploration well, 3D Oil will be carried for up to US$30 million in drilling costs and will contribute 20 per cent of drilling costs in line with its interest in the Permit.
The completion of the farmout of T/49P places 3D Oil in a unique position for a small cap company to ultimately supplying gas to the East Coast Market. The company is firmly focused on becoming a supplier to the East Coast Gas market at a unique time in local and global gas markets.
The exploration programme in T/49-P will continue, and each stage will bring the T/49-P Joint Venture a step closer to providing gas to the domestic market.
The next phase will involve acquisition and processing of not less than 1580km2 3D seismic data aimed at evaluating a series of leads in the permit. These leads in combination with the Flanagan Prospect have a best estimate prospective resource of over 10 TCF.