3D Oil nears completion of Vic/P79 farmout to ConocoPhillips Australia
Sydney-listed 3D Oil and ConocoPhillips Australia have signed an agreement to satisfy a key condition of the farmout of VIC/P79 offshore Victoria, 3D Oil said on October 21. The agreement was announced in July this year.
3D Oil will receive a cash payment of $3mn while retaining 20% interest in Vic/P79. ConocoPhillips Australia will drill an exploration well within the primary term, currently ending February 2025, in which it will carry 3D Oil up to the first $35mn of well costs.
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“This second major deal with the ConocoPhillips group of companies is an outstanding result for the company,” 3D Oil said. “ConocoPhillips Australia is the ideal partner to undertake the drilling on the permit in support of the company’s goal to become an east coast gas producer.”
3D Oil said this farm-in builds on the previously announced agreement with ConocoPhillips Australia, to enter T/49P, also as the 80% interest holder.
“The 2,576 km2 Vic/P79 permit along with the 4,683 km2 T/49P permit makes the 3D Oil and ConocoPhillips Australia joint venture the dominant title holder on the prospective shallow water Otway shelf,” it added.