- 3D Oil (TDO) receives the GSEL 759 gas storage exploration licence by the South Australian Department for Energy and Mining in the onshore Otway Basin
- The grant of the licence is part of an emerging broader energy strategy for the company in a time of an impending energy crisis in Eastern Australia and the transition in the domestic and global energy sector
- Over the next few months, 3D Oil will undertake technical work to gain a better understanding of the reservoirs’ sustainability for gas storage applications
- Shares in 3D Oil are up 5.88 per cent and trading at 5.4 cents at 2:01 pm AEST
3D Oil (TDO) has been awarded the GSEL 759 gas storage exploration licence by the South Australian Department for Energy and Mining in the onshore Otway Basin, SA.
The licence covers an area of 1.02 square kilometres and is centrally located around the plugged and abandoned Caroline-1 wellhead, over part of the now depleted Caroline Field which was originally used for the production of carbon dioxide in the Otway Basin.
It has a five-year minimum guaranteed work program that includes detailed reservoir and seal studies as well as the delivery of a final economic model.
The grant of GSEL 759 is part of an emerging broader energy strategy for the company in a time of an impending energy crisis in Eastern Australia and the transition in the domestic and global energy sector.
Executive Chairman Noel Newell called the grant “a very small initial step”, elaborating that the potential for gas storage holds great potential which this asset has advantages worthy of further investigation.
“The company is developing strategies to offer more diversified energy solutions,” Mr Newel said.
“Should this play out, the capability for gas storage would be an attractive addition to the quality suite of oil and gas assets in the company’s existing portfolio.
“The diversification of energy solutions is consistent with future domestic energy demands and the company developing an approach to participate in a range of energy solutions.”
3D Oil said the acquisition builds upon the demonstrated existing technical strengths and provides an opportunity to work with other parties to supplement additional technical requirements.
Over the next few months, the company will undertake technical work to gain a better understanding of the reservoirs’ sustainability for gas storage applications.
Shares in 3D Oil were up 5.88 per cent and trading at 5.4 cents at 2:01 pm AEST.