3D Oil Limited (TDO) announces that Beach Energy Limited has agreed to increase its funding of the expanded Flanagan 3D seismic survey in the T/49P permit in the offshore Otway Basin.
The Flanagan survey is now programmed to record 974 sq km of full-fold data, significantly above the 755 sq km permit commitment.
Beach will earn an additional 10% interest in T/49P by paying an increased share of the expanded Flanagan survey costs. The final cash contribution of the parties will be determined by the final cost of the acquisition and processing of the survey. The T/49P joint venture will then be TDO 70% (operator), with Beach Energy at 30%.
TDO Managing Director Noel Newell commented: “ The technical and commercial fundamentals of gas exploration in this area are very strong. We consider the fact that a large Australian operator like Beach Energy has increased its stake in T49P is a strong validation of the potential of permit. It is also gratifying that Beach has confidence in our joint venture and in TDO’s operatorship of the permit.”
Acquisition of the 974 sq km Flanagan survey is underway northwest of King Island and, subject to weather and sea conditions, is expected to be completed by mid-December. The Polarcus Asima is a state-of-the-art seismic vessel which is towing 10 recording streamers in an array approximately 1 km wide and 6km long in order to record seismic data for the survey.
T/49P covers an area of 4,960 km2 in water depths generally no greater than 100m. The permit is lightly explored covered by a broad grid of 2D seismic data of varying vintages and has two exploration wells drilled in 1967 and 1970.
The Flanagan survey is designed to mature a number of leads in northern part of the block which are located adjacent to the neighbouring Thylacine and Geographe producing gas fields which have a combined gas in place (GIP) of over 2 TCF. The Whalebone and Flanagan leads have a combined best estimate Prospective Resource of 7.8 TCF GIP.