3D Oil : December 2021 Quarterly Activities Report and Appendix 5B

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ASX Release	3D Oil Limited
25 January 2022	Level 18, 41 Exhibition Street
	Melbourne VIC 3000
	Tel: +61	3 9650 9866
	Fax: +61	3 9639 1960
	www.3doil.com.au
	3D Oil Limited

QUARTERLY ACTIVITIES REPORT

FOR THE THREE MONTHS ENDED 31 DECEMBER 2021

Highlights for the quarter include:

• T/49P (Otway Basin):

1. ConocoPhillips Australia (COPA) completes acquisition of ~1700km2 of the Sequoia 3D MSS, covering the most prospective areas and all existing leads.

• 1. Processing of the Sequoia 3D MSS is underway with a preliminary fast-track volume anticipated in Q2 2022.
• VIC/P74 (Gippsland Basin):
• 1. TDO releases prospective resource update based on the delineation of the

Emperor Subgroup play at Megatooth and Oarfish leads.

• 1. Oarfish is now the largest unrisked gas target in VIC/P74 with a combined best estimate prospective resource of 544 Bcf gas.
• WA-527-P(Roebuck Basin):
• 1. Planning for the acquisition of the Sauropod 3D MSS as a multiclient survey with

CGG continues to progress.

• 1. 12-monthSuspension & Extension accepted by NOPTA for Permit Years 1-3 of the Primary Term. Permit Years 1-3 now ends on 28 December 2022.
• New Ventures:
• 1. TDO Application in the June round of the Australian offshore gazettal progresses to Joint Authority for Decision.

3D Oil Limited (ASX: TDO, "3D Oil" or "the Company") is pleased to provide an update to its activities for the quarter ending 31 December 2021.

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Exploration

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T/49P, Otway Basin, offshore Tasmania

3D Oil holds 20% interest in the T/49P exploration permit, which covers 4,960km2 of the strategic offshore Otway Basin. The permit is located adjacent to the producing Thylacine and Geographe gas fields (Operated by Beach Energy Limited (ASX: BPT)). ConocoPhillips Australia SH1 Pty Ltd ("COPA") holds 80% interest in the permit and is Operator on behalf of the Joint Venture.

Sequoia 3D Marine Seismic Survey (MSS)

During the quarter, the Shearwater vessel Geo Coral safely completed the acquisition of approximately 1700km2 of the Sequoia 3D Marine Seismic Survey (MSS), on behalf of ConocoPhillips Australia (COPA) as Operator of the T/49P Joint Venture.

Having commenced in late August 2021, the Sequoia 3D MSS finished at midnight on 31 October 2021 in accordance with the approved EP from NOPSEMA. The survey was completed in full compliance with stringent Environmental Plan (EP) conditions, including all marine mammal and invertebrate management requirements, and fulfills ConocoPhillips' commitment to acquire 3D seismic over a minimum area of 1580 km2 within the Permit, as per the Farmout Agreement ("FOA") and TDO ASX Announcement on 18 December 2019. TDO will make no financial contribution towards the acquisition of the Sequoia 3D MSS.

3D Oil believes the Sequoia 3D MSS EP has established a new benchmark in Australia for environmental performance standards and adaptive management plans to protect key environmental aspects.

The maximum full-fold acquisition area approved in the Environmental Plan (2450km2) was much larger than the minimum commitment. Unfortunately, the Sequoia 3D MSS was hampered by unprecedented weather in Bass Strait early in the acquisition window which, in addition to further EP conditions, resulted in a total acquisition area less than the approved 2450km2. Despite this, prioritisation of the survey across the central corridor has yielded coverage across the most prospective leads, including all pre-existing leads (excluding Flanagan).

In combination with the Flanagan 3D MSS, acquired by TDO in 2014, the Sequoia 3D MSS will allow the Joint Venture to evaluate the full potential of the permit with high quality, modern 3D seismic. Processing of the Sequoia 3D MSS is currently under way and a preliminary fast-track volume for interpretation is anticipated in Q2 of calendar year 2022.

Upon interpretation of the Sequoia 3D MSS and high grading of potential gas targets, COPA may elect to drill an exploration well in fulfillment the current Year 6 work program. As per the FOA, TDO will be carried for up to US$30 million in drilling costs after which it will contribute 20% of drilling costs in line with its interest in the Permit.

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Figure 1: Location Map with the final full-fold acquisition area of the Sequoia 3D Marine

Seismic Survey (courtesy of ConocoPhillips Australia)

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Table 1: T/49P Prospective Resource Estimate (TCF) Recoverable Gas

(ASX ann. 27-Jul-17)

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	Location	Status		Low		Best		High
	Flanagan	Prospect		0.53		1.34		2.74
	Munro (T/49P Part)	Lead	0.04	0.19	0.57
	Whistler Point	Lead		0.82		2.04		8.95
	British Admiral	Lead	0.37	1.03	4.45
	Seal Rocks	Lead		0.95		4.64		10.64
	Harbinger	Lead	0.33	0.79	1.43
	T/49P Arithmetic Total		3.04	10.03	28.77

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons

VIC/P74, Gippsland Basin, offshore Victoria

The Company holds 50% interest in the VIC/P74 exploration permit, which covers 1,009km2 along the margin of the Southern Terrace, Gippsland Basin. The permit is located adjacent to major Oil and Gas discoveries, including Bream and the giant Kingfish Field, the largest oil field ever discovered in Australia having produced over one billion barrels of oil to date (Figure 2).

Figure 2: Location map of VIC/P74 showing leads with prospective resources.

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Emperor Subgroup Resource Potential

At the start of the quarter, TDO released an update to the market on the Prospective Resource estimates within the permit (TDO ASX Announcement 7 October 2021).

An assessment of the play potential of the deeper Emperor Subgroup yielded additional gas prospectivity at some of the existing leads within VIC/P74, including Oarfish and Megatooth. This follows stratigraphic studies, seismic interpretation and depth conversion studies of the top of the Emperor Subgroup, yielding additional closures along strike to the gas sands at the Omeo discovery.

Oarfish is now the largest unrisked gas target in VIC/P7, having a total best estimate recoverable prospective resource of 544 Bcf, up from 338 Bcf. The lead is situated 2km to the east of Omeo 1A and reservoir/seal pairs are anticipated to be similar. Oarfish essentially has the same trapping configuration as the Omeo structure, which has hydrocarbons at equivalent levels based on log analysis and RFT recovery of water and gas with a thin film of oil/condensate.

Given the addition of the Emperor Subgroup play, Megatooth now has a total best estimate recoverable prospective resource of 465 Bcf, up from 204 Bcf. The lead is well situated relative to the kitchen underlying Bream towards the northeast and migration can be demonstrated by gas-condensates intersected within the Lower Latrobe Group at Omeo 1A. Emperor gas sands at the Omeo wells lie within 1km of Megatooth.

The next stage of exploration in VIC/P74 will involve the acquisition or purchase of modern 3D seismic data to assist with maturing the best potential lead(s) to prospect status. Internal risking is currently underway to assist with informing this next stage. The Gippsland 3D MSS covers most of the Bigfin Lead should internal risking favor the maturation of Bigfin Lead.

Farmout Campaign

Active discussions with interested farm-in candidates are ongoing, but given the upgrade in Prospective Resource estimates, the Joint Venture is seeking the best possible terms to facilitate the next stages of exploration including, seismic acquisition and drilling.

Table 2: VIC/P74 Prospective Resources Estimate (Bcf) Recoverable Gas

(Nett to TDO in brackets)

Lead/Prospect	Status	Low	Best	High
Oarfish	Lead	303 (152)	544 (272)	918	(459)
Bigfin	Lead	296 (148)	502 (251)	783	(392)
Megatooth	Lead	259 (130)	465 (233)	784	(392)
Stargazer	Lead	192	(96)	344 (172)	564	(282)
VIC/P74 Arithmetic Total	1050	(526)	1855 (928)	3049	(1525)

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