3D Energi Secures US$65M Carry for 2025 Otway Basin Drilling Campaign

Strategic Drilling Plans Take Shape in Otway Basin

3D Energi Limited (ASX: TDO) has provided a comprehensive update on its second quarter activities ending December 31, 2024, highlighting significant progress in its flagship Otway Exploration Drilling Program (OEDP). The company, in partnership with ConocoPhillips Australia (COPA), is finalising preparations for a multi-well drilling campaign offshore Victoria and Tasmania, with the Transocean Equinox semi-submersible rig scheduled to arrive in the Otway Basin in the first quarter of 2025.

The OEDP is structured in two phases: an initial firm commitment to drill two exploration wells, supported by a US$65 million carry from COPA covering 3D Energi's share of drilling costs, followed by an optional phase of up to four additional wells contingent on early results. The advanced stage of planning includes finalising drilling locations based on detailed 3D seismic interpretation and securing critical support vessels such as Anchor Handling Tug Supply Vessels (AHTSVs).

Refined Resource Estimates and Portfolio Maturation

During the quarter, 3D Energi has continued its subsurface evaluations, leveraging newly reprocessed 3D seismic data to mature prospects within the VIC/P79 and T/49P permits. The company reports a gross best estimate prospective resource base of 849 billion cubic feet (Bcf) in VIC/P79 alone, with 571 Bcf concentrated in the La Bella Complex. Similarly, in T/49P, the 1.3 trillion cubic feet (Tcf) Flanagan Prospect remains a key focus, with detailed velocity modelling and depth conversion studies underway to refine resource estimates.

These efforts are critical to prioritising drilling targets and underpinning the joint venture’s strategy to fast-track development in the event of economic discoveries. The company is also planning a new 3D seismic survey, Regia, to expand the prospect inventory ahead of Phase 2 drilling, aiming to unlock additional value in northern VIC/P79.

Portfolio Rationalisation and Regulatory Progress

In a strategic move, 3D Energi has received consent from the National Offshore Petroleum Titles Administrator (NOPTA) to surrender its Gippsland Basin permit VIC/P74, allowing the company to focus resources on higher-value projects in the Otway and Bedout basins. Meanwhile, environmental planning for the OEDP is progressing through regulatory channels, with the Environmental Plan resubmitted to NOPSEMA following standard review processes.

On the West Coast, the company is advancing plans for the Sauropod Multi-Client 3D seismic survey in WA-527-P, a permit covering 6,500 square kilometres in the Bedout Sub-basin. This survey aims to delineate promising incised valley structures and large undrilled leads such as Salamander, positioning 3D Energi to capitalise on the basin’s proven petroleum system.

Financial Position and Outlook

As at December 31, 2024, 3D Energi held approximately A$1.875 million in cash and equivalents, with net operating cash outflows of A$191,000 for the quarter. The company maintains disciplined capital management while advancing its exploration agenda. Payments to related parties, including directors’ fees and salaries, totalled A$148,000 during the period.

Executive Chairman Noel Newell emphasised the transformative potential of the upcoming drilling campaign, noting that the program represents the culmination of over a decade of work and could significantly enhance shareholder value amid East Coast Australia’s pressing gas supply challenges.