3D Oil Ltd. finalized farmout of 80% interest and operatorship of VIC/P79 to ConocoPhillips Australia SH2 Pty. Ltd. following approval of transfer of title documentation by the National Offshore Petroleum Titles Authority.
ConocoPhillips Australia will carry one exploration well in VIC/P79 by the end of the primary term in February 2025 and is preparing to fulfil terms of the farm out agreement by preparing an environmental plan and stakeholder consultation for drilling up to six exploration wells within VIC/P79 and T/49P. ConocoPhillips is also actively searching for an appropriate rig to complete the drilling program.
The VIC/P79 exploration permit covers 2,576 sq km 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 has identified several low-risk, amplitude supported exploration targets.
In accordance with the farm out agreement, 3D Oil will be carried for up to $35 million in gross drilling costs after which it will contribute 20% of drilling costs in line with its interest in the permit. The company will receive a cash payment of $3 million.