3D Energi Raises $14.5M at $0.14 per Share for Key Gas Exploration
3D Energi has raised $14.5 million through a well-supported placement to fund critical drilling and testing activities in the Otway Basin, aiming to unlock new gas reserves for Australia's East Coast market.
- Placement raised $14.5 million at $0.14 per share
- Strong backing from domestic and international institutional investors
- Funds allocated to Essington-1 well testing and Charlemont-1 drilling
- Placement includes free attaching options exercisable at $0.21
- Drilling at Charlemont-1 underway, expected to take about 33 days
Capital Raise to Accelerate Exploration
3D Energi Limited (ASX – TDO) has successfully completed a $14.5 million placement, priced at $0.14 per share, to bolster its exploration efforts in the Otway Basin. The placement attracted strong support from a mix of new and existing institutional investors both domestically and internationally, signaling confidence in the company’s strategic direction and asset potential.
The funds raised will be primarily directed towards testing the Essington-1 well and advancing drilling activities for the Charlemont-1 gas exploration well within the VIC/P79 permit. This well forms part of the 2025 Otway Exploration Drilling Program (OEDP), a critical campaign designed to identify commercially viable natural gas reserves that could supply Australia’s East Coast energy market.
Strategic Partnership and Drilling Progress
3D Energi is working alongside joint venture partners ConocoPhillips and Korea National Oil Corporation (KNOC) on this drilling program. The Charlemont-1 well has already commenced drilling, with an expected duration of approximately 33 days to reach a total depth of 2,830 meters. The company anticipates that the results from this well will be pivotal in validating the extensive technical work and risk mitigation efforts accumulated over the past 12 years.
Alongside the share placement, 3D Energi is offering one free attaching option for every new share issued, exercisable at $0.21 within two years, subject to shareholder approval. This structure provides investors with additional upside potential should the exploration results prove successful and share prices appreciate.
Market Implications and Next Steps
The placement price reflects a discount to recent trading levels, a common feature in capital raises aimed at securing swift and broad investor participation. The company expects to settle the placement by late December 2025, with shares to be listed shortly thereafter. Shareholder approval for the attaching options is anticipated at a general meeting scheduled for late January 2026.
Executive Chairman Noel Newell expressed optimism about the drilling campaign, highlighting it as the culmination of over a decade of technical groundwork. The company’s progress in the Otway Basin will be closely watched by investors and industry observers alike, given the strategic importance of natural gas supply to Australia’s energy landscape.
Bottom Line?
3D Energi’s capital raise sets the stage for a critical drilling phase that could reshape its resource outlook and influence East Coast gas supply dynamics.
Questions in the middle?
- Will the Charlemont-1 well confirm commercially viable gas reserves as hoped?
- How will the market respond to the dilution and option issuance following shareholder approval?
- What are the next exploration or development steps if drilling results are positive?
