Proactiveinvestors recommends

Additional Information

Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	TDO
Latest Price:	0.08 (-17.58% )
52-week High:	0.19
52-week Low:	0.07
Market Cap:	15.49M

1 year chart

1 day chart

3D Oil Full 3D Oil profile here

3D Oil (ASX: TDO) is an oil and gas explorer and developer focused on SE Australia. It currently has a contingent resource (2C) of 9.2 MMbbl in the prolific offshore Gippsland Basin together with a number of neighbouring low risk prospects.

3D Oil progresses farm-out of petroleum permit in Gippsland Basin

Thursday, November 03, 2011 by Angela Kean

Melbourne-based 3D Oil (ASX: TDO) has begun the process of farming out its VIC/P57 petroleum exploration permit in the Gippsland Basin, entering into a non-binding term sheet with Canadian oil and gas company Oracle Energy (TSX: OEC).

Under the terms of the agreement, Oracle Energy can potentially earn 50% in the permit and earn the right to be appointed operator by drilling two wells by spending up to A$30 million.

The two exploratory wells will most likely be on the Felix and Sea Lion prospects.

3D Oil was granted renewal of the VIC/P57 permit for a five-year term in early August. All of the identified leads and prospects in VIC/P57 were retained following the compulsory relinquishment of half of the graticular blocks in the original permit.

The renewed acreage comprises approximately 483 square kilometres, around two thirds of the original area.

The permit contains the West Seahorse Field in which independent consultants Gaffney Cline and Associates have estimated that the 2C Contingent Resource is 9.2 million barrels of oil.

VIC/P57 also overlies the prolific Rosedale Fault System which has numerous associated prospects and leads within the permit including the Sea Lion and Felix Prospects.

Sea Lion is adjacent and a lookalike to the West Seahorse structure and has a prospective Resource of 20.7 million barrels of recoverable oil and upside potential of in excess of 32 million barrels.

The Felix Prospect is also located within an established oil production fairway between the Moonfish oil field and the Wirrah discovery, and it is structurally similar to the former. This prospect has the potential to contain over 100 million barrels.

A jack up drilling rig is expected to arrive in the Gippsland Basin region in November 2012.

Oracle Energy will now complete due diligence on the permit during November and December before entering into a definitive agreement.

If Oracle Energy chooses to proceed with the farm-in, the company will also be required to prepare an optimum Field Development Plan for the West Seahorse field and take responsibility of the debt financing of the development.

The deal is conditional upon 3D Oil and Oracle Energy signing definitive documentation by February 17, 2012.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.