ASX-listed oil and gas company 3D Oil has completed the farmout of 80% interest and operatorship of VIC/P79 offshore block in Australia to ConocoPhillips, after the approval of the transfer of title documentation by the National Offshore Petroleum Titles Authority ("NOPTA").
3D Oil will receive cash payment of US$3 million. ConocoPhillips Australia will carry 3D Oil for one exploration well in VIC/P79 up to US$35 million, after which it will contribute 20% of drilling costs in line with its interest in the Permit, by the end of the primary term in February 2025.
The VIC/P79 exploration permit covers 2,576 km² of the offshore Otway Basin and is flanked by producing gas fields Thylacine and Geographe, as well as the La Bella gas discovery.
3D Oil said it had identified several low-risk, amplitude supported exploration targets as operator in the first year of the work program and passes operatorship to ConocoPhillips Australia to continue maturing the subsurface interpretation of prospects for the drilling of an exploration well before the end of the primary term in February 2025.
Drilling in 2024/2025
ConocoPhillips Australia has commenced preparations for drilling including the preparation of an Environmental Plan (EP) and stakeholder consultation for the drilling of up to six exploration wells within VIC/P79 and T/49P.
"ConocoPhillips are also actively searching for an appropriate rig to complete the drilling program," 3D Oil said.
"The completion of this farmout deal is an important step towards the company's goal of becoming an east coast gas producer, building on the strong partnership that 3D Oil has developed with ConocoPhillips Australia since entering a Joint Venture in T/49P exploration permit in 2020 and enabling the T/49P and VIC/P79 permits to be explored more efficiently," 3D Oil said.
"We look forward to working with ConocoPhillips Australia as they mature the prospectivity of the permit and progress towards exploration drilling in 2024/2025. Given the dynamic nature of current work program additional specific information, including timing, will be released to the market as it becomes available," 3D Oil said.