3D Oil Limited announced that the South Australian Department for Energy and Mining has awarded the Company the GSEL 759 Gas Storage Exploration Licence in the onshore Otway Basin. The licence covers an area of 1.02km2, centrally located around the plugged and abandoned Caroline-1 wellhead, over part of the now depleted Caroline Field, originally used for the production of carbon dioxide in the Otway Basin. The Field is potentially suitable for the storage of hydrogen, natural gas, or carbon dioxide. As part of a strategy to adapt to the dynamics of the present energy sector, the Company will undertake a feasibility study in the coming months to ascertain which of these options will provide the best economic outcome while considering the ease of deliverability. The acquisition of GSEL 759 represents an exciting development opportunity for the Company in broadening 3D Oil's strategy in the rapidly changing East Coast energy market. The GSEL is ideally situated being located only 20km southeast of Mount Gambier and proximal to the South East Pipeline System. It comes shortly after the recent announcement of the acquisition and farmout of VIC/P79 in the offshore Otway Basin containing the low-risk gas Prospect Vanguard . The Caroline field was previously held by Air Liquide Australia Ltd. and was relinquished at the end of April 2022 having produced approximately 20 BCF of CO2. Caroline was discovered in 1967 during petroleum exploration drilling and flowed CO2 in commercial quantities at up to 99% purity. It became the single most profitable well in South Australia1. Food grade liquid CO2 was processed onsite continuously from 1968 until 2016. The field declined during the last decade of production and was shut in during 2017, plugged and abandoned in 2019 and the site remediated. The exciting new acquisition builds on TDO's demonstrated existing technical strengths and provides an opportunity to work with other parties to supplement additional technical requirements. Over the next few months, the Company will undertake technical work to better understand the reservoirs' suitability for gas storage applications, including storage capacity, reservoir deliverability and seal integrity, with a view to determining the most feasible business model from multiple gas storage and supply scenarios. An example includes the storage of natural gas, where storage is principally used to meet load variations. Gas is injected into the storage reservoir during periods of low demand and withdrawn from storage during periods of peak demand. It is also used for a variety of secondary purposes, including: Balancing the flow in pipeline systems. GSEL 759 has a 5-year minimum guaranteed work program that includes detailed reservoir and seal studies (including geomechanics), seismic reprocessing and interpretation, the development of a static and dynamic reservoir model, completions assessments and the
delivery of a final economic model.