The survey will cover an area of 2700km2, with the acquisition estimated to take 60 days between the beginning of August and the end of October 2021.
ConocoPhillips is the operator on behalf of the T/49P joint venture, with 80 per cent equity in the permit and 3D Oil holding the remaining 20 per cent.
Upon completion of the acquisition, processing and interpretation of the 3D seismic survey, ConocoPhillips can elect to drill an exploration well which will fulfil the current year-six work program obligation.
If the company elects to drill an exploration well, 3D Oil will be carried for up to $US30 million in drilling costs after which it will contribute 20 per cent of drilling costs in line with its interest in the permit.
3D Oil executive chairman Noel Newell said this was a key milestone for the company in the realisation of the significant gas potential identified in the permit.
“3D Oil strategically acquired this permit with the view that this area is arguably the last on the east coast with significant remaining gas reserves,” Newell said.
In June last year the company completed the farmout of T/49P to ConocoPhillips following approval from the National Offshore Petroleum Titles Authority (NOPTA).
T/49P covers an area of 4960km2 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.
In 2017, the company’s year-five work program was varied to replace a well with the acquisition of 3D seismic.
A one-year suspension and extension was granted on year five in February 2019, extending the second term to February 2021.