NOPSEMA has approved a farm-out agreement which will enable ConocoPhillips to earn up to 80% of 3D Oil’s T/49P exploration permit on the proviso that the latter spends the first $43.44 million in exploration funds on the project.
The deal makes provision for ConocoPhillips to front a $5million cash payment and complete a 1580km 3D seismic survey, in return for transfer of the title of the T49P exploration licence.
Following initial drilling, 3D Oil will retain a 20% stake in the permit and will be liable for its share of payments for further drilling.
The permit is located in the eastern offshore Otway Basin, west of King Island, and covers an area of 4,960m2 in water depths of 100m. It is adjacent to the significant Thylacine and Geographe gas discoveries which contain over 2Tcf.
3D Oil was awarded the permit in May 2013 as part of the 2012 Gazettal round. The Year 5 work program was varied in January 2017 to replace a well with the acquisition of 3D seismic. A further one-year Suspension and Extension was granted for Year 5 on February 20th, 2019, extending the Secondary Term to February 22nd, 2021.