3D Oil farmout 80% interest in VIC/P79 and operatorship to ConocoPhillips Australia

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3D Oil executes farmout deal for VIC/P79 to ConocoPhillips Australia. (Credit: C Morrison from Pixabay)

3D Oil Limited (ASX: TDO, “3D Oil” or “the Company”) is pleased to announce that ConocoPhillips Australia SH2 Pty Ltd (“ConocoPhillips Australia”) has executed a Farmout Agreement (“FOA”) in relation to the offshore Victorian Exploration Permit VIC/P79 (“Permit”), located in the Otway Basin.

Under the terms of the FOA, ConocoPhillips Australia will acquire an 80% interest in the Permit and operatorship in exchange for an upfront payment of USD$3 million (~AUD$4.35 million). ConocoPhillips Australia will also undertake to drill an exploration well as required by the Permit’s Primary Term minimum work commitment (currently required by February 2025). The Company will be carried for up to USD$35 million (~AUD$50.75 million) in well costs, above which it will contribute 20% of costs in line with its interest in the Permit.

It should be noted that the FOA is subject to conditions precedent, including the agreement and signing of a Joint Operating Agreement by both parties and required government / regulatory approvals.

Source: Company Press Release