3D Energi Sets September Drilling Start for Otway Basin Wells

Finalising the Otway Exploration Phase 1

3D Energi Limited has taken a significant step forward in its Otway Basin exploration efforts by confirming the final locations for its Phase 1 drilling program. The company will target two key wells, Essington-1 and Charlemont-1, within the VIC/P79 permit area off the coast of Victoria. This announcement provides clarity on the drilling sequence and timing, setting the stage for operations to begin in September 2025, subject to weather and operational conditions.

Strategic Partnership and Financial Backing

Crucially, 3D Energi’s drilling costs for these initial wells will be carried by ConocoPhillips Australia, the operator, for up to US$65 million. This arrangement significantly reduces the financial exposure for 3D Energi while allowing it to maintain a 20% participating interest in the VIC/P79 and T/49P permits. The partnership with a major player like ConocoPhillips underscores the potential value seen in the Otway Basin prospects.

Operational Preparations and Environmental Compliance

Preparations for the drilling campaign are well underway, with anchors and mooring chains scheduled for deployment at Essington-1 in August 2025, followed by similar operations at Charlemont-1 between August and November. The use of the Transocean Equinox rig, a proven offshore drilling platform, further supports the operational readiness. Importantly, all activities will adhere strictly to the approved Environment Plan, with Petroleum Safety Zones established from July 2025 through March 2026 to ensure safe and uninterrupted operations.

Looking Ahead to Phase 2 and Beyond

While Phase 1 focuses on two firm wells, the broader Otway Exploration Drilling Program contemplates up to six wells in total, with up to four additional optional wells planned for Phase 2. The outcomes of the initial drilling will be pivotal in determining the scale and pace of further exploration. Investors and industry watchers will be keenly observing the results, which could unlock significant new resources in this underexplored offshore region.

Market and Strategic Implications

This update from 3D Energi not only advances the company’s exploration agenda but also signals growing momentum in the Otway Basin’s hydrocarbon potential. The financial backing by ConocoPhillips and the methodical approach to environmental and operational planning position 3D Energi well for the challenges ahead. However, the inherent uncertainties of offshore drilling, including weather and technical risks, remain factors to watch as the program unfolds.