3D Oil wraps up Aussie farmout deal with ConocoPhillips
Sydney-listed 3D Oil has completed the farmout of 80% interest in the VIC/P79 exploration permit offshore Victoria to ConocoPhillips following the approval by the National Offshore Petroleum Titles Authority (NOPTA), it said on March 16.
3D Oil will receive a cash payment of $3mn while retaining 20% interest in Vic/P79. ConocoPhillips Australia will drill an exploration well within the primary term, currently ending February 2025, in which it will carry 3D Oil up to the first $35mn of well costs.
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 this farm-in builds on the previously announced agreement with ConocoPhillips Australia, to enter T/49P, also as the 80% interest holder.
ConocoPhillips Australia has commenced preparations for drilling, including the preparation of an environmental plan and stakeholder consultation for the drilling of up to six exploration wells within VIC/P79 and T/49P, 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,” the company said.