3D Oil Limited near completion of VIC/P79 farmout to ConocoPhillips Australia
Tuesday 25 October 2022
3D Oil and ConocoPhillips Australia sign Joint Operating Agreement to satisfy a key condition of the farmout of VIC/P79.
3D Oil to receive cash payment of US$3 mill (A$4.841 mill) while retaining 20% interest in Vic/P79.
ConocoPhillips Australia to drill an exploration well within the primary term,currently ending February 2025, in which it will carry 3D Oil up to the first US$35 million (A$56.51 mill) of well costs.
3D Oil Limited,ConocoPhillips Australia SH2 Pty Ltd and TDO have executed a Joint Operating Agreement (“JOA”) in relation to the offshore Victorian Permit VIC/P79 (“Permit”) which satisfies a key condition of the Farmout Agreement (“FOA”) announced on 1st July 2022. Completion of the farmout will occur following government approval.
Under the terms of the FOA, the Company will receive a US$3 million (A$4.841 million) cash payment in exchange for ConocoPhillips Australia acquiring an 80% interest in the Permit and operatorship. In addition, TDO will be carried on the drilling of an exploration well by ConocoPhillips Australia for up to US$35 million (A$56.51 million), after which it will contribute 20% of well costs in line with its interest in the Permit.
This second major deal with the ConocoPhillips group of companies is an outstanding result for the Company. 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.