Charlemont-1 Targets 93 Bcf Gas with 81% Success Chance in Otway Basin
3D Energi has commenced drilling the Charlemont-1 gas exploration well offshore Victoria, targeting a substantial 93 billion cubic feet of gas with promising geological indicators. This marks a key step in the Otway Exploration Drilling Program aimed at bolstering East Coast gas supplies.
- Drilling started at Charlemont-1 well in Otway Basin
- Targeting ~93 Bcf gross mean prospective gas resource
- 81% Chance of Success supported by strong geophysical data
- Well expected to take about 33 days to reach 2830m depth
- 3D Energi holds 20% interest; ConocoPhillips operates
Drilling Commences at Charlemont-1
3D Energi Limited has officially begun drilling the Charlemont-1 gas exploration well, located offshore in the Otway Basin, Victoria. This well is the second in the 2025 Otway Exploration Drilling Program (OEDP), a strategic initiative to identify commercially viable natural gas reserves to support Australia's East Coast energy needs. The drilling operation was initiated on 10 December 2025, with ConocoPhillips Australia as the operator and 3D Energi holding a 20% stake.
Promising Prospective Resources and Geological Indicators
The Charlemont-1 well targets the Charlemont B prospect within the VIC/P79 permit area, aiming for an estimated 93 billion cubic feet (Bcf) of gross mean prospective gas resources in the Waarre A reservoir. The prospect benefits from an 81% Chance of Success, underpinned by compelling geophysical evidence such as a conforming amplitude anomaly and a well-developed flat spot interpreted as a gas-water contact. These direct hydrocarbon indicators align closely with the nearby La Bella gas discovery, suggesting a promising geological setting.
Operational Details and Risks
The drilling is expected to take approximately 32.9 days to reach a total depth of 2,830 meters true vertical depth subsea (TVDSS), subject to operational conditions including wireline logging activities. While the technical outlook is positive, potential risks remain, including fault seal leakage that could reduce gas saturation and elevated CO₂ concentrations associated with deep fault systems. Reservoir deliverability will be further assessed through formation testing using the Ora platform if hydrocarbons are detected.
Strategic Importance and Next Steps
This well is part of a broader program that could see up to six exploration wells drilled in the Otway Basin, with the second phase potentially adding four more wells. The program aims to contribute significantly to Australia's natural gas supply, addressing both current and future market demands. 3D Energi has confirmed that there have been no material changes to the prospective resource estimates since their June 2025 release, maintaining confidence in the project's potential.
Investors and market watchers will be closely monitoring drilling progress and forthcoming updates as Charlemont-1 advances through key milestones, which will provide clearer insights into the reservoir's commercial viability.
Bottom Line?
As drilling unfolds, Charlemont-1 could reshape 3D Energi’s resource profile and influence East Coast gas dynamics.
Questions in the middle?
- Will the Charlemont-1 well confirm the high prospective resource estimates?
- How will potential CO₂ levels impact reservoir quality and commercial viability?
- What are the implications for 3D Energi’s valuation if drilling results exceed or fall short of expectations?
