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- 3D Oil (TDO) executes a joint operating agreement to satisfy a key condition of the VIC/P79 farmout
- The agreement was signed with ConocoPhillips Australia in relation to the offshore Victorian Permit VIC/P79, which will be complete following government approval
- Under the terms of the agreement, 3D Oil will receive a US$3 million (A$4.8 million) cash payment in exchange for ConocoPhillips acquiring an 80 per cent interest in the permit and operatorship
- Additionally, the cost of drilling the well will be covered by ConocoPhillips for up to US$35 million
- 3D Oil ends the day in the grey to close at 5.9 cents
3D Oil (TDO) has executed a joint operating agreement to satisfy a key condition of the VIC/P79 farmout.
The agreement was signed with ConocoPhillips Australia in relation to the offshore Victorian Permit VIC/P79. The completion of the farmout will then occur following government approval.
Under the terms of the farmout agreement, 3D Oil will receive a US$3 million (A$4.8 million) cash payment in exchange for ConocoPhillips acquiring an 80 per cent interest in the permit and operatorship.
Additionally, the cost of drilling the well will be covered by ConocoPhillips for up to US$35 million, after which it will contribute 20 per cent of the well costs in line with its interest in the permit.
3D Oil said this second deal with ConocoPhillips is an “outstanding result” for the company and dubbed it an “ideal partner” to undertake drilling of the permit.
The timing of the contract coincides with other potential activity in the Otway Basin. This farm-in builds on a previously announced agreement with ConocoPhillips Australia to enter T/49P, also as the 80 per cent interest holder.
3D Oil ended the day in the grey to close at 5.9 cents.
