Otway Basin’s 9.2 Tcf Gas Potential Spurs 3D Energi’s Six-Well Drilling Plan
3D Energi is gearing up to drill up to six exploration wells in the offshore Otway Basin, targeting a massive 9.2 trillion cubic feet of prospective gas resources. The entry of Korea National Oil Corporation into the joint venture adds strategic weight to this pivotal East Coast energy project.
- Otway Exploration Drilling Program to start September 2025 with two firm wells
- 9.2 Tcf gross prospective gas resource identified across VIC/P79 and T/49P permits
- Korea National Oil Corporation acquires 29% interest, joining ConocoPhillips and 3D Energi
- Transocean Equinox rig arrived, seabed surveys completed for Phase 1 drilling
- 3D Energi holds A$719,000 cash with ongoing negative operating and investing cash flows
A Bold Step into the Otway Basin
3D Energi Limited has announced significant progress in its offshore gas exploration efforts in the Otway Basin, a region critical to Australia's East Coast energy supply. The company is preparing to commence the Otway Exploration Drilling Program (OEDP) in September 2025, with plans to drill up to six wells across two key permits, VIC/P79 and T/49P. This program aims to unlock commercial gas reserves that could help alleviate looming supply shortages forecast by the Australian Energy Market Operator.
A Resource Base of National Significance
Recent seismic reprocessing and interpretation have identified 51 prospects with an aggregated mean prospective resource of 9.2 trillion cubic feet (Tcf) of gas, making this the largest offshore gas inventory in the Otway Basin. Notably, the Charlemont Cluster alone holds over 1 Tcf of prospective gas, potentially supplying Victoria’s gas needs for six years. Meanwhile, the Flanagan and Regia Clusters offer substantial upside, with ongoing seismic acquisition planned to mature these prospects further.
Strategic Partnerships and Operational Readiness
The entry of Korea National Oil Corporation (KNOC) into the joint venture, acquiring a 29% stake, marks a significant endorsement of the project's potential. ConocoPhillips Australia remains the operator with a 51% interest, while 3D Energi retains 20%. The arrival of the Transocean Equinox semi-submersible drilling rig and completion of seabed surveys underscore the operational readiness for the upcoming drilling campaign. Phase 1 will focus on two confirmed wells, Essington-1 and Charlemont-1, both supported by strong geological indicators and proximity to existing infrastructure.
Broader Exploration and Financial Context
Beyond the Otway Basin, 3D Energi is advancing exploration in Western Australia's Bedout Sub-Basin and developing a gas storage project in South Australia. However, the company’s cash position remains modest at A$719,000, with ongoing negative cash flows from operations and investing activities. Management continues to monitor funding options closely, confident in their ability to secure capital as needed to support exploration and development.
Looking Ahead
The upcoming drilling campaign represents a critical test of 3D Energi’s extensive prospect inventory and could position the company as a key supplier to Australia’s East Coast gas market. Success in these wells would not only validate the substantial resource estimates but also accelerate development timelines in a market facing tightening supply. Investors and industry watchers will be keenly observing regulatory approvals, drilling outcomes, and partnership dynamics as the project unfolds.
Bottom Line?
3D Energi’s Otway Basin drilling campaign could reshape East Coast gas supply, but success hinges on upcoming well results and funding sustainability.
Questions in the middle?
- Will the Phase 1 wells confirm the large prospective gas volumes estimated?
- How will regulatory approvals, including FIRB clearance for KNOC, impact project timelines?
- What funding strategies will 3D Energi pursue to support ongoing exploration and development?
