3D Oil has completed the farmout of T/49P in the Otway Basin to ConocoPhillips following approval from the National Offshore Petroleum Titles Authority (NOPTA).
Under the terms of the joint operating agreement (JOA), ConocoPhillips will hold an 80 per cent interest in the permit and become operator.
As a result, 3D Oil will receive a $5 million cash payment in recognition of previous permit expenditure, with ConocoPhillips acquiring a 3D seismic survey of 1580km2 within the permit.
3D Oil reported that the 3D seismic data would help reduce the geological risk surrounding the structural configuration of key leads and help identify a suitable drilling target.
Following completion of the acquisition, processing and interpretation of the 3D seismic survey, ConocoPhillips has the option to drill an exploration well, which will fulfil the current year-six work program obligation.
T/49P and covers an area of 4960 km2 in water depths of less than 100m west of King Island. The permit lies adjacent to the Thylacine and Geographe gas discoveries, which the company was awarded in 2013.
“The company is very positive about its prospects. While global conditions are very challenging the potential for gas commercialisation in eastern Australia are very promising,” 3D Oil stated.