US$19.8 million valuation underpins disputed 20% VIC/P79 buy-out

VIC/P79 buy-out remains contested

3D Energi Limited (ASX:TDO) is facing a potentially material change to its portfolio after ConocoPhillips purported to exercise its right to buy the company’s 20% interest in the VIC/P79 permit, based on a disputed fair market value of US$19.8 million. The proposed transaction has not completed, and 3D Energi’s board says the valuation materially undervalues the stake.

The valuation, determined by RISC Advisory on 1 September, comprised a risked US$13 million value for 3D Energi’s share of the Essington Gas Discovery and US$6.8 million for its share of the permit’s remaining exploration value. The underlying Essington estimate was a US$25.4 million unrisked post-tax NPV10, risked using a 51% chance of development. ConocoPhillips’ 18 September notice states that a 5% discount to the RISC valuation applies under the joint operating agreement.

The process follows the VIC/P79 valuation dispute, in which an independent expert had valued the stake at US$19.8 million and the board had already challenged the figure. Completion is conditional on the validity of the relevant notices, the absence of any manifest error in RISC’s determination and the receipt of required regulatory and third-party consents. If those conditions are met, settlement is due 10 business days after the consents are obtained.

Flanagan reprocessing precedes T/49P drilling decision

At T/49P, where 3D Energi retains a 20% interest alongside ConocoPhillips and Korea National Oil Corporation, the operator continued dedicated reprocessing of the Flanagan 3D seismic survey. The work is designed to apply modern imaging techniques to the original survey geometry, with the aim of improving subsurface imaging and prospect definition.

Completion is expected in the fourth quarter of 2026, ahead of permit Year 6, which begins on 22 February 2027 and includes one exploration well. The reprocessed data is intended to inform decisions on Phase 2 of the Offshore Exploration Drilling Program and the prospects in the Flanagan Cluster. The filing describes those outcomes as expected benefits, rather than confirmed exploration results.

WA-527-P survey clears environmental hurdle

On the Northwest Shelf, NOPSEMA accepted the Environment Plan for the Sauropod 3D marine seismic survey on 12 October, after the reporting quarter. The survey can now be acquired between January and May 2027 under the accepted plan, subject to the separate approval of a proposed two-year suspension, extension and work-program variation by NOPTA.

3D Energi is assessing commercial and funding options for the survey, including third-party participation and data licensing. The company is the 100% titleholder of WA-527-P, and the survey is described as critical to evaluating the permit’s prospectivity and satisfying a minimum work commitment of at least 510 square kilometres. No funding arrangement or farm-in partner has been announced in this report.

Cash runway leaves limited room for delay

3D Energi held A$2.271 million in cash at 30 September, after net operating outflows of A$410,000 and investing outflows of A$110,000 during the quarter. The Appendix 5B reports estimated funding of 4.37 quarters based on relevant quarterly outgoings of A$520,000, with no financing facilities available.

That calculation provides a useful marker for the timing pressure around the company’s next decisions. The VIC/P79 process could determine whether 3D Energi receives proceeds for an asset it says has been undervalued, while WA-527-P requires additional regulatory clearance and a funding solution before the Sauropod survey can proceed in its proposed acquisition window. The next material developments are therefore likely to be procedural as much as geological: the buy-out’s validity and completion, NOPTA’s permit decision and the company’s ability to fund or share the Western Australian program.