Gippsland Basin focused 3D Oil (ASX: TDO) has identified prospectivity in the deeper levels of the VIC/P57 permit.
Reprocessing of more than 500 square kilometres of 3D seismic data has shown the potential for additional prospectivity at depth, particularly in the two most mature prospects, Felix and Sea Lion.
Initial inspection indicates a significant improvement in data quality in deeper horizons.
Thorough assessment of the new data will take several months to complete.
3D Oil commissioned reprocessing close to a year ago to improve image quality in the deeper horizons of the project.
Further to the east, the deeper section, principally the Golden Beach and Emperor Subgroups, has proved to have significant potential, particularly for gas.
Nearby discoveries within these strata include the Longtom and Grayling gas fields and the SE Longtom-1 and SE Remora-1 wells, as well as the Judith and Kipper gas fields further east.
The Felix prospect is located within an established oil production fairway, with potential to contain more than 100 million barrels.
3D Oil is undertaking a review of the deep prospectivity of the Sea Lion prospect, where recent work highlighted potential for a sizeable closure within the Golden Beach Subgroup.
Oracle Energy agreement
Earlier this month, 3D Oil entered into a non-binding term sheet with Canadian oil and gas company Oracle Energy Corporation (TSXV: OEC).
Oracle has the potential to earn 50% in the VIC/P57 permit by drilling two wells for total expenditure of up to $30 million.
3D Oil is currently operator and 100% owner of VIC/P57.