3D Energi Launches Drilling at Essington-1, Targeting 262 Bcf Offshore Gas
3D Energi has commenced drilling the Essington-1 well offshore Victoria, aiming to unlock a combined gross mean prospective gas resource of 262 billion cubic feet. This marks the start of a pivotal exploration phase in the Otway Basin to bolster Australia’s East Coast gas supply.
- Essington-1 well spudded offshore Victoria in Otway Basin
- Targeting 262 Bcf gross mean prospective gas resource in stacked Waarre C and A reservoirs
- Drilling expected to take 32 days to planned depth of 2,650 meters TVDSS
- Phase 1 of Otway Exploration Drilling Program underway with 3D Energi holding 20% interest
- Next planned well, Charlemont-1 within same VIC/P79 permit
Drilling Commences at Essington-1
3D Energi Limited (ASX – TDO) has officially begun drilling the Essington-1 gas exploration well, located offshore in the Otway Basin, Victoria. The well was spudded on 1 November 2025 using the Transocean Equinox rig, marking the commencement of Phase 1 of the Otway Exploration Drilling Program (OEDP). Situated approximately 55 kilometers offshore from Port Campbell, Essington-1 is the first of two wells planned for this initial phase, with the broader program potentially extending to six wells.
Targeting Significant Prospective Gas Resources
Essington-1 is targeting two stacked reservoirs within the VIC/P79 permit area – the Waarre C and Waarre A formations. Together, these hold a gross mean prospective resource estimated at around 262 billion cubic feet (Bcf) of natural gas. The Waarre C reservoir, at approximately 2,240 meters true vertical depth subsea (TVDSS), carries a 76% chance of success with a mean prospective resource of 76 Bcf. The primary target, the Waarre A reservoir at about 2,470 meters TVDSS, is supported by seismic evidence including a flat spot indicative of a gas-water contact, and carries a 68% chance of success with a mean prospective resource of 186 Bcf.
Operational Outlook and Risks
The drilling program is expected to take roughly 32 days to reach the planned total depth of 2,650 meters, subject to operational conditions. Upon successful drilling, formation evaluation including wireline logging will be conducted to assess hydrocarbon presence and reservoir quality. While the prospect is considered relatively low risk, technical challenges such as potential fault seal leakage and elevated CO₂ concentrations linked to fault systems remain considerations that could impact gas saturation and commercial viability.
Strategic Importance for East Coast Gas Supply
The OEDP aims to identify and develop new gas supplies critical to Australia’s East Coast domestic market, which faces ongoing supply pressures. 3D Energi holds a 20% participating interest in the VIC/P79 permit, with operator ConocoPhillips Australia leading the drilling activities. Following Essington-1, the rig will move to drill Charlemont-1, located about 20 kilometers northwest within the same permit, continuing the exploration push in the Otway Basin.
Executive Commentary
Executive Chairman Noel Newell highlighted the significance of this milestone, describing the start of drilling as “one of the most exciting exploration campaigns on Australia’s East Coast in recent years.” He emphasized the potential of the stacked reservoirs to transform 3D Energi’s resource base and contribute meaningfully to future energy needs.
Bottom Line?
As drilling advances, the market will watch closely for signs that Essington-1 can deliver on its promising gas potential.
Questions in the middle?
- Will the formation evaluation confirm commercially viable gas quantities at Essington-1?
- How will technical risks like fault leakage and CO₂ levels affect reservoir quality and development plans?
- What are the timelines and prospects for the subsequent Charlemont-1 well and later phases of the OEDP?
