An independent expert has pegged 3D Energi’s 20% stake in VIC/P79 at US$19.8 million, setting a September deadline for ConocoPhillips to exercise its buy-out right. The valuation, however, is contested by 3D Energi’s board.
- Independent expert values 3D Energi’s VIC/P79 stake at US$19.8 million
- Valuation includes risked NPV10 of Essington Gas Discovery and exploration assets
- ConocoPhillips has until 24 September 2026 to exercise buy-out option
- 3D Energi disputes validity of ConocoPhillips’ default and buy-out notices
- Board considers valuation materially undervalues company’s interest
Independent Expert Sets Fair Market Value at US$19.8 Million
3D Energi Limited (ASX:TDO) has received a formal Fair Market Value (FMV) determination from independent valuer RISC Advisory, placing its 20% participating interest in the VIC/P79 offshore exploration permit at US$19.8 million (A$28.6 million) as of the default date 6 February 2026. This valuation combines a risked post-tax net present value (NPV10) of the Essington Gas Discovery and additional exploration potential within VIC/P79.
Valuation Details Highlight Risked Gas Discovery and Exploration Upside
RISC’s assessment breaks down into US$13.0 million attributed to 3D Energi’s share of the Essington Gas Discovery, which is based on an unrisked post-tax NPV10 of US$25.4 million discounted at 10% nominal and adjusted for a 51% Chance of Development. The remaining US$6.8 million reflects 3D Energi’s portion of exploration value in the Regia and Charlemont clusters within VIC/P79. Together, these components sum to the total FMV of US$19.8 million.
Buy-Out Deadline Looms as Dispute Continues
Under the joint operating agreement (JOA), ConocoPhillips Australia SH2 Pty Ltd, the operator holding 51% of VIC/P79, has until 24 September 2026 to exercise its right to acquire 3D Energi’s interest at the FMV, adjusted for any default claims, interest, and applicable discounts. Should the buy-out notice be deemed valid, RISC’s valuation is binding and final barring fraud or manifest error. As of this announcement, ConocoPhillips has not acted on this right.
3D Energi continues to challenge the validity of ConocoPhillips’ default and buy-out notices, explicitly reserving all rights in relation to these matters. The board has publicly stated that the US$19.8 million valuation materially undervalues its stake, signalling ongoing tension in the joint venture relationship.
Strategic Implications for 3D Energi and VIC/P79
The Essington Gas Discovery and surrounding exploration acreage represent the core value drivers for 3D Energi in VIC/P79, with the operator and Korea National Oil Company holding the majority stakes alongside 3D Energi’s 20%. The valuation and potential buy-out come after a series of operational and financial challenges for 3D Energi, including previous ASX trading suspensions and capital raising efforts to fund exploration activities.
ConocoPhillips’ decision to pursue the buy-out process underscores the strategic importance of VIC/P79 within the Otway Basin, a region that has seen renewed interest following recent gas discoveries. The outcome of this buy-out right, whether exercised or contested further, will materially impact 3D Energi’s portfolio and future exploration strategy.
Bottom Line?
The coming weeks will be critical as ConocoPhillips weighs exercising its buy-out right at a valuation disputed by 3D Energi, leaving the company’s future stake in VIC/P79 uncertain.
Questions in the middle?
- Will ConocoPhillips exercise its buy-out right before the 24 September deadline?
- How might 3D Energi’s dispute over the valuation affect joint venture dynamics and project progress?
- What impact will the buy-out outcome have on 3D Energi’s broader exploration and funding strategy?