3D Oil Ltd. has closed its farmout of 80% of Tasmanian offshore Otway basin permit T/49P to ConocoPhillips following approval of documentation by Australia’s National Offshore Petroleum Titles Authority (NOPTA).
ConocoPhillips becomes operator of the permit that stretches down across Bass Strait and along Tasmania’s west coast.
3D will receive $5 million (Aus.) in cash as payment for past expenditure and will be carried through a 3D seismic survey of not less than 1,580 sq km.
Upon completion, processing, and interpretation of the seismic data ConocoPhillips can elect to drill an exploration well to fulfill the current Year 6 work program obligation for the permit. If ConocoPhillips drills the well, 3D will be further carried for up to US$30 million in drilling costs, after which it will contribute 20% in line with the permit interests.
Water depths across the 4,960 sq km permit are around 100m. Two very early wells (Prawn-1 drilled in the northwest of the permit in 1968 and Whelk-1 in the southeast in 1970) were later shown to be invalid targets.
In more recent times the Thylacine and Geographe commercial gas discoveries to the north east of the permit have upgraded the region.
3D Oil was awarded the permit with 100% interest in May 2013. The focus of interest so far has been the Flanagan prospect, a series of tilted fault blocks in the north, and the Seal Rocks prospect, a series of horsetail tilt blocks in the south.