3D Energi Reports Largest Otway Basin Gas Find Since 2021, Eyes Charlemont-2

Significant Discoveries in the Otway Basin

3D Energi Limited has delivered a promising update following the completion of Phase 1 of its Otway Exploration Drilling Program. The company announced two gas discoveries at Essington-1 and Charlemont-1 within the VIC/P79 exploration permit, confirming a working petroleum system in this strategically important region off Victoria’s coast.

Essington-1 stands out as the largest undeveloped gas discovery in the Otway Basin since 2021. Located just 12 kilometres from existing gas infrastructure, it offers a potentially streamlined pathway to market. The gas composition is particularly favourable, featuring low carbon dioxide content and a high liquids component, which could enhance its commercial appeal and reduce processing complexity.

Extending the Charlemont Gas Trend

Meanwhile, Charlemont-1 has extended the known gas trend by approximately 10 kilometres, confirming gas presence in both primary and secondary reservoir targets. Despite operational challenges such as high formation pressures that limited some advanced logging and testing, petrophysical analysis supports the presence of significant gas columns in the Waarre C and Waarre A reservoirs.

This discovery not only validates 3D Energi’s pre-drill geophysical models but also strengthens confidence in the prospectivity of the Charlemont Trend, which includes the nearby La Bella gas discovery. The geological and seismic data suggest a gas-charged system extending along this trend, with similar amplitude anomalies observed in intervening prospects.

Progressing Regulatory Milestones

The Joint Venture, led by operator ConocoPhillips Australia with partners including Korea National Oil Company and 3D Energi holding a 20% interest, is advancing through the regulatory process. Notices of Discovery have been submitted for Essington-1, with Charlemont-1’s expected shortly. Discovery Assessment Reports are due in the coming months, paving the way for Declaration of Location applications. This formal recognition is a critical step toward securing retention leases or production licences under Australian offshore petroleum regulations.

The proximity of both discoveries to existing infrastructure offers flexibility in development options, potentially enabling standalone or coordinated projects. This strategic positioning is particularly relevant given the east coast’s forecast gas supply shortfalls.

Looking Ahead – Charlemont-2 and Beyond

Attention now turns to the optional Charlemont-2 well, which would target the Charlemont A prospect; a significant undrilled structure with a mean prospective resource estimated at 332 billion cubic feet gross. The consistency between pre-drill models and recent discoveries underpins optimism for this next phase, although risks remain related to reservoir quality and overpressure at greater depths.

3D Energi’s Executive Chairman, Noel Newell, reflected on the milestone – “These outcomes deliver a strong endorsement of the technical work undertaken to date and give us real confidence in the future prospectivity of our licences.” He also acknowledged challenges ahead but emphasised the team’s commitment to preserving and enhancing value for shareholders.

As the company integrates Phase 1 data and navigates regulatory milestones, the Otway Basin’s evolving story will be closely watched by investors seeking exposure to Australia’s critical gas supply landscape.