3D Energi Limited announced the grant of a 2-year Suspension and Extension of the primary term work commitment of WA-527-P petroleum exploration permit, offshore Western Australia, providing the Company until 28 December 2025 to acquire the Sauropod MC3D seismic survey. This reinforces preferred funding strategy to secure a partner to fund the forward work program, replicating recent deals with ConocoPhillips Australia in the Otway. This extension coincides with improving investment conditions and significant near-term activity in the Bedout Sub-Basin, supporting ongoing farm out activities.

The permit term will now end on 28 December 2028. The grant of this 2-year suspension and extension is important for the WA-527-P project. The Company's preferred strategy to fund the forward exploration program, which includes the acquisition of the Sauropod MC3D seismic survey, has been to secure a farm-in partner, replicating the recent successful introduction of super-major ConocoPhillips Australia into Otway permits T/49P and VIC/P79.

Industry events over the past 12 months have provided headwinds to investment in Australia's oil and gas industry, driven by litigation from environmental groups against the Federal Government, Santos and Woodside over approvals for major oil and gas projects. This has created regulatory uncertainty and limited the Company's ability to attract new investment in exploration projects. The Company is confident that the string of recent regulatory approvals of Environmental Plans for major oil and gas projects signals a positive outlook for the return of investment.

The Company continues to diligently market the opportunity to prospective partners. Ongoing activities in the Bedout Sub-Basin will continue to provide exposure to WA-527-P in support of ongoing farm out efforts. The Dorado project is aiming to be FID ready by the end of 2024 and Santos is reportedly planning a partial divestment of its 80% equity ahead of the project sanction, potentially introducing new players into the basin.

Upcoming exploration activities may also support farm out efforts, with the Santos led Joint Venture having identified a high-graded exploration prospect proximal to WA-527-P that could be drilled in an upcoming exploration program. 3D Energi holds a 100% participating interest in WA-527-P exploration permit, which covers an area of 6,580km2 over shallow Commonwealth waters of the Bedout Sub-Basin, where water depths generally range from 100-150m. The permit is located 195km west of Broome, on the Northwest Shelf, adjacent to the 2018 Dorado Discovery, the largest oil and gas condensate discovery in Australia in 30 years, and along trend from the recent 2022 Pavo oil discovery.

The acquisition and processing of a minimum of 510km2 of 3D seismic data over the most prospective areas of the permit forms a minimum commitment for the primary term (Years 1-3) work program of WA-527-P. The Sauropod 3D is critical to the evaluation of the full prospectivity of WA-527-P, especially for the delineation of potential Dorado look-alike traps identified on reprocessed 2D seismic within WA-527-P. The Dorado oil discovery in 2018 was the largest oil discovery on the Northwest Shelf in 30 years and has spurred a resurgence in exploration activity in the basin. The trapping mechanism at Dorado involves the erosional truncation of the Archer Formation sandstone reservoirs by large channels, subsequently backfilled with shales during a rapid rise in sea level, and there are strong indications for a northern extension to the Dorado channel system into WA-527-P.