ConocoPhillips Australia (CPA) signed a joint operating agreement (JOA) with 3D Oil Ltd., Melbourne, to advance a farmin to 3D Oil’s permit Vic/P79 on the southern edge of the offshore Otway basin of western Victoria.
The permit lies to the south and west of producing gas fields which are connected to the western Victorian processing and pipeline system.
Under the terms of the farm-in agreement, CPA will pay 3D Oil $3 million cash for 80% interest and operatorship.
CPA also will carry 3D Oil for the cost to drill one exploration well up to $35 million with a spud date before February 2025, after which 3D Oil will pay its 20% share.
Signing of the JOA is one of the last elements of the farm-out to CPA, which now needs government approval for completion.
The farmout builds on a previous agreement in 3D Oil’s T/49P in the Tasmanian sector of the Otway basin west of King Island in which CPA gained 80% interest and operatorship.
Vic/P79 covers 2,576 sq km, while T/49P covers 2,683 sq km. Once the Vic/P79 deal is approved, the joint venture will become the dominant player in terms of acreage in the offshore Otway.