Overview
3D Oil’s formation was motivated by an initial focus on the
Gippsland Basin which has been one of the most prolific oil and gas
producing region in Australia. The Company’s strategy is to target
a combination of favourable technical and commercial considerations
including:
• the availability of a high quality 3D seismic survey over the
Northern Margin of the Gippsland Basin;
• the current oil market favouring the development of underexploited
oil fields; and
• the opening up of the Victorian gas market favouring the development
of underexploited gas fields.
Initially the Company aims to appraise and develop the Proved and Probable Reserves and Contingent Resources in the West Seahorse oil field totalling 10.3MMstb (on a best estimate basis) of which approximately 85% is within VIC/P57. The West Seahorse Field is located approximately two kilometres to the west of the producing Seahorse Oil Field and flanked by several other fields including the Wirrah and Moonfish Oil Fields. Upon the successful completion of the West Seahorse-3 well the Company intends to commence Front End Engineering and Design (FEED) and review funding options for the development of the Field. It is anticipated that the construction of the production facilities would commence in 2008.
The oil in the West Seahorse Field is typical of the Gippsland Basin fields, and the Company anticipates that oil will be easily producible. It is a light crude (48° API) with a low gas to oil ratio and anticipated strong water drive within the reservoir.
The Company also plans to drill an exploration well at the Sea Lion Prospect with Prospective Resources of 20.7 MMstb (best estimate) in the Gippsland Basin Permit. Exploration for oil and gas assets in VIC/P57 will benefit from the 2003 Northern Margin 3D seismic survey which covers approximately 70% of the Permit revealing an array of prospects and leads including Sea Lion and the Felix Prospect. The Prospective Resources for the Felix Prospect is 6.9 MMstb (best estimate).
In the Bass Basin Permit the Company plans to acquire 2D Seismic to rank and select a candidate for drilling. The Permit is located approximately 60 kilometres to the east of the Yolla Field which has published reserves of 330 PJ of sales gas, and 28 MMbbl of oil and condensate. Of the five leads currently identified within T41-P, the Darymple Lead displays a strong seismic anomaly characteristic of a gas accumulation. The unrisked Prospective Resources for the Darymple Lead are 74 STOIIP MMstb (best estimate) or 75 GIIP Bscf (best estimate).
History
3D Oil Limited was incorporated in July 2003 and acquired a 100% interest in the Gippsland Basin Permit VIC/P57 in Bass Strait, through the gazettal process in April 2004. The Permit covers a 750 square kilometre area and has been tested by only four wells, one of which was the West Seahorse oil discovery, and only one of these wells has been drilled within the last 25 years.
In June 2005 the Company acquired a 100% interest in the Bass Basin Permit T41-P in Bass Strait. The Permit covers approximately 2805 square kilometres and is very lightly explored, that is with only a regional grid of 2D seismic and the drilling of one well.
The Company listed on the Australian Stock Exchange (ASX) on 22nd May 2007. Under the Prospectus a total of 110 million ordinary fully paid shares (Shares) were issued at 40 cents each raising a total of $44 million, with 25 cents per Share payable on application and the balance of 15 cents per Share payable on 6 December 2007.