3D Energi has announced that the Korea National Oil Corporation (KNOC) will enter the joint ventures with 3D Energi and ConocoPhillips Australia (COPA) in the Otway exploration permits VIC/P79 and T/49P, subject to regulatory approvals. 3D Energi retains a 20% participating interest in both permits while COPA will farm down to 51% with KNOC assuming a 29% interest. COPA will retain operatorship of the Joint Venture.
Highlights
- Korea National Oil Corporation (KNOC) to enter the Otway Basin Joint Venture with 3D Energi (TDO) and ConocoPhillips Australia (COPA).
- KNOC to attain a 29% interest in both permits following a farm down of COPA interest in the permits, subject to regulatory approvals.
- TDO to retain 20% interest in both permits VIC/P79 and T/49P while the COPA carry for up to US$65 million in gross drilling costs remains in place.
- The exploration program has been further bolstered with KNOC’s investment participation and exploration expertise, reinforcing our commitment to find new natural gas discoveries to supply domestic gas to the east coast of Australia.
Executive Chairman’s Comments
Mr Noel Newell, Executive Chairman of 3D Energi, stated, 'I believe it is incredibly encouraging that KNOC will join our Otway joint venture subject to regulatory approvals – it supports our view of the exceptional prospectivity in our permits and the overall commercial opportunity. KNOC is a fully integrated oil and gas company which operates globally. 3D Energi welcomes KNOC and looks forward to working with them as the Joint Venture progresses toward becoming a significant East Coast gas producer.'
A new global company joins the Otway gas hunt
COPA has entered into an agreement with KNOC, the national oil and gas company of South Korea, where the latter will acquire a 29% interest in the VIC/P79 and T/49P exploration permits, subject to regulatory approvals. COPA will reduce their interest to 51% while 3D Energi’s interest will remain at 20%. COPA will retain operatorship of the Joint Venture.
COPA’s obligations under the farmout (FOA) agreements for T/49P (TDO ASX release 11 June 2020) and VIC/P79 (TDO ASX release 16 March 2023), and the amendments to the agreements (TDO ASX release 24 June 2024, remain the same with the two well carry remaining at a combined cap of up to US$65 million in gross drilling costs. The entry of KNOC into this Joint Venture is subject to Foreign Investment Review Board (FIRB) and other regulatory approvals
Figure 1 – VIC/P79 and T/49P exploration permits and operational areas for the Otway Exploration Drilling Program (OEDP)
Source: 3D Oil
