3D Energi navigates a valuation deadlock over its VIC/P79 stake while pushing seismic and drilling plans in key Australian offshore basins, and exits a challenging gas storage licence.
- Independent valuation underway for VIC/P79 buy-out dispute
- Seismic reprocessing in T/49P to refine exploration targets
- WA-527-P permit progressing with environmental plan updates
- GSEL 759 gas storage licence surrendered due to technical challenges
- Cash position steady at A$2.8 million with ongoing operating outflows
Valuation Deadlock on VIC/P79 Interest
3D Energi Limited (ASX:TDO) finds itself at a critical juncture in its offshore Otway Basin portfolio, as negotiations over the buy-out of its 20% stake in the VIC/P79 permit by operator ConocoPhillips have stalled. After months of discussions failed to produce a consensus on fair market value, an independent valuer, RISC Advisory, was appointed in late May to deliver a binding valuation within 90 days. This process will determine whether ConocoPhillips exercises its right to acquire 3D Energi’s interest, potentially reshaping the company’s asset base and exposure in one of Australia’s largest offshore gas exploration areas.
Seismic Reprocessing Enhances T/49P Exploration Prospects
Meanwhile, 3D Energi’s 20% interest in the adjacent T/49P permit offshore Tasmania is progressing with a targeted seismic reprocessing program. The Flanagan 3D seismic survey is being reprocessed using modern imaging techniques tailored to the original acquisition geometry, aiming to improve data quality and subsurface resolution. Scheduled for completion in the current quarter, this work is designed to boost confidence in structural interpretations and support decision-making for upcoming exploration drilling planned for February 2027. This focused effort reflects the company’s strategy to mature prospects within the Flanagan Cluster ahead of the next phase of activity.
WA-527-P Permit Advances Amid Regional Drilling Plans
On Australia’s west coast, 3D Energi retains full ownership of the WA-527-P exploration permit in the Bedout Sub-basin, a region gaining momentum following major discoveries like Dorado and Pavo. The company is actively seeking a farm-in partner to fund the Sauropod 3D seismic survey acquisition, a key work commitment for the permit’s primary term. Environmental approvals remain underway, with the updated Environmental Plan under review by NOPSEMA after modifications. The broader Bedout basin is gearing up for drilling next year, with the Transocean Equinox rig contracted for a firm well targeting the Ara Prospect, potentially unlocking further value for 3D Energi’s acreage depending on campaign outcomes.
Exit from GSEL 759 Gas Storage Licence
In a strategic retreat, 3D Energi surrendered its 100% interest in the onshore GSEL 759 licence in South Australia during the quarter. The decision follows technical assessments revealing significant challenges in subsurface imaging and injectivity potential, compounded by logistical hurdles such as dense vegetation and complex near-surface geology. These factors undermined confidence in the permit’s storage capacity and the economics of further evaluation, prompting the company to cut losses and focus resources elsewhere.
Financial Position and Outlook
Financially, 3D Energi reported cash and equivalents of approximately A$2.8 million at quarter-end, down from A$3.6 million the previous quarter. Operating cash outflows were A$344,000, with investing activities consuming a further A$382,000, mainly directed at exploration and evaluation. Payments to related parties, including director salaries and fees, amounted to A$116,000. The company continues to manage its cash carefully as it advances seismic programs and awaits the outcome of the VIC/P79 valuation process, which could have material implications for future capital allocation.
Bottom Line?
3D Energi’s near-term trajectory hinges on the VIC/P79 valuation outcome and securing partners for WA-527-P seismic acquisition, with seismic reprocessing and drilling campaigns poised to test the value of its core permits.
Questions in the middle?
- Will ConocoPhillips proceed with the VIC/P79 buy-out after RISC Advisory’s valuation?
- How will seismic reprocessing results in T/49P influence drilling plans and partner interest?
- Can 3D Energi secure a farm-in partner to fund the critical Sauropod 3D survey on WA-527-P?