3D ENERGI LIMITED ASX Release 29 January 2021
3D Oil Limited
Level 18, 41 Exhibition Street
Melbourne VIC 3000
Tel: +61 3 9650 9866
Fax: +61 3 9639 1960www.3doil.com.au
3D Oil Limited
QUARTERLY ACTIVITIES REPORT
FOR THE THREE MONTHS ENDED 31 DECEMBER 2020
Highlights for the quarter include:
• VIC/P74 (Gippsland Basin):
o TDO continues to mature gas prospects within the lower Latrobe Group play
o Potential farmout discussions continue under Confidentiality Agreements
• T/49P (Otway Basin): ConocoPhillips Australia (COPA) nears submission of the Environment Plan for the Sequoia 3D MSS
• WA/527P (Roebuck Basin): Negotiations continue with seismic vessel contractors
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 2020.
Exploration
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 1).
In July 2020, the Joint Venture purchased 1004 km2 of the CGG 3D Gippsland Regeneration Reprocessing over the VIC/P74 permit area, including full and offset stacks, gathers and velocity model, thereby fulfilling a major work commitment of the Primary Term.
Figure 1: VIC/P74 permit with purchased CGG 3D seismic reprocessing
The interpretation of this improved reprocessed 3D seismic (Figure 2) has progressed quickly and the mapping of twelve key horizons has been finalised over the last quarter, including the prospective Golden Beach and Emperor horizons. As a result of this work, several potentially commercial gas targets have been delineated within the Golden Beach Subgroup and additional oil potential has been identified in Upper Latrobe reservoirs. The largest feature identified to date is the BigFin Lead which has a potential areal closure of ~20km2 and a vertical relief of up to 200m (Figure 3).
Figure 2: Comparison of the legacy 3D data (top image) with CGG 3D seismic reprocessing purchased by the Joint Venture (bottom image)
Depth conversion is one of the most important technical components of the primary work programme due to previous drilling failures associated with velocity inversions across the shallow overburden. Accordingly, several velocity models have been developed for comparison and comprehensive sensitivity analysis is nearing completion, which will reduce the uncertainty on the structural configuration, size, and volume of identified targets.
Upon completion of depth conversion workflows over the next quarter, a Leads and Prospects Seriatim with Prospective Resources will be released to the market. The Joint Venture's growing list of gas prospects in the west Gippsland basin will be strategically placed to address an upcoming shortfall in gas supply in South East Australia. The following quarter will also focus on investigating additional play concepts within the Lower Latrobe Group and reducing the uncertainty on petroleum systems elements at key drill targets.
Interest in the Gippsland Basin is growing given its importance for domestic gas supply, the role of natural gas in both a low carbon future and the federal government's 'gas-fired' recovery from the coronavirus pandemic. This is supported by ExxonMobil's recent decision to retain its operated producing assets in Gippsland Basin, as well as seismic company CGG's decision to fast-track the release of the recently acquired Gippsland 3D MSS to Q4 2020 (Figure 2).
The Company has been approached by several interested farm-in candidates to date and, despite the early stages of the VIC/P74 primary work programme, initial data rooms have been conducted this quarter under Confidentiality Agreements.
Figure 3: VIC/P74 Permit area shown with extent of licensed reprocessing and the CGG
Gippsland Marine Seismic Survey
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 (100% owned by Beach Energy Limited (ASX: BPT)).
ConocoPhillips Australia SH1 Pty Ltd ("COPA") holds 80% interest in the permit and is operating. In accordance with the Farm out Agreement ("FOA"), COP will now undertake the acquisition of a 3D seismic survey of not less than 1580 km2 within the Permit to which TDO will make no financial contribution.
Throughout the quarter COPA progressed stakeholder consultation regarding the Sequoia 3D MSS. The survey, formerly known as Dorrigo, will now cover approximately 2840km2, which is an increase of 1260km2. Between December 4 2020 and January 3 2021, the Sequoia 3D MSS Environment Plan (EP) was made available for public comment. TDO understands that COPA are now assessing the comments received, and where necessary integrating with the EP and before submitting the document to NOPSEMA for assessment.
TDO welcomes the proposed increase of acquisition foot-print. In combination with the Flanagan 3D MSS, acquired by TDO in 2014, the majority of the T/49-P permit will be coveredby high quality, modern 3D seismic data. This will allow the Joint Venture to evaluate the full potential of the permit. The primary objective of the survey is to cover remaining leads in the central and southern sections of the T/49P acreage and provide further detail on the Flanagan Prospect. Once processing and interpretation is complete, it is hoped that the Joint venture will be able to generate a permit-wide prospect seriatim that will inform the best possible drilling location.
Upon completion of the 3D seismic program, COP may elect to drill an exploration well which will fulfill the current Year 6 work commitment. In the event COP elects to drill such exploration well, the Company 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.
Figure 4: Location Map of the Sequoia 3D Marine Seismic Survey (image Courtesy of
ConocoPhillips Australia)
Table 1: T/49P Prospective Resource Estimate (TCF) Recoverable Gas
(ASX ann. 27-Jul-17)
Flanagan | Prospect | 0.53 | 1.34 | 2.74 |
Location | Status | Low | Best | High |
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
WA-527-P, Bedout Sub-basin, offshore Western Australia
3D Oil holds 100% interest in the WA-527-P exploration permit, which covers 6,500km2 of the offshore Bedout Sub-basin. The permit is located adjacent to oil and gas/condensate discoveries at Roc, Phoenix South and Dorado (Figure 5).
In July 2020, the Company received approval from the government regulator NOPSEMA to undertake acquisition of the Sauropod 3D MSS. The EP is approved for a maximum full fold acquisition area of 3447km2 between January and April inclusive of 2021 Throughout this quarter the Company continued to negotiate with seismic vessel providers in order to secure a vessel that will be capable of acquiring the survey within the constraints of the approved Environment Plan.
The survey is primarily aimed at determining the potential for traps associated with a Triassic erosional channel system that is analogous to that which provides the trapping mechanism for the nearby Dorado discovery.
Figure 5: Location of Sauropod 3D MSS Environmental Planning Area
Table 2: WA-527-P Prospective Resource Estimate (MMbbls) Recoverable Oil
Prospect
Stat | Best |
us |
Low
High
Salamander | Lead | 57 | 191 | 713 |
Jaubert
Lead
17
72
205
Whaleback | Lead | 16 | 87 | 219 |
WA-527-P Arithmetic Total
90
349
1,138
(ASX ann. 26-Feb-18)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/P57, Gippsland Basin, offshore Victoria
TDO holds 24.9% interest in the VIC/P57 exploration permit in the offshore Gippsland Basin with Joint Venture ("JV") partner and operator, Hibiscus Petroleum. 3D Oil acts as technical adviser to the JV.
The Joint Venture have identified two drilling candidates in the permit including; Felix and Pointer. The Pointer Prospect is an AVO supported gas target, located close to shore andnearby infrastructure. It is well placed to supply resources to the east Australian gas market. The Felix Prospect is a low risk Oil & Gas prospect located between the Wirrah discovery and Moonfish field.
The Joint Venture looks forward to adding to its Gippsland Basin Seriatim with leads and prospects identified within VIC/P74.
Figure 5: Prospects and Leads, VIC/P57
Figure 6: Pointer Prospect Response on Offset Stacks.
Table 3: VIC/P57 Prospective Resources Estimate (MMbbls) Recoverable Oil
(ASX ann. 27-Jul-17)
Felix | Prospect | 6.8 | 15.9 | 26.9 |
Location | Status | Low | Best | High |
Salsa | Lead | 10.7 | 15.1 | 20.6 |
VIC/P57 Arithmetic Total | 17.5 | 31.0 | 47.5 |
Table 4: VIC/P57 Prospective Resource Estimate (BCF) Recoverable Gas
Location | Status | Low | Best | High |
Dexter | Lead | 37.0 | 132.0 | 259.1 |
Pointer | Prospect | 140.1 | 235.3 | 364.9 |
VIC/P57 Arithmetic Total | 177.1 | 367.2 | 624.0 |
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.
Corporate
As at 31 December 2020, the Company held cash and cash equivalents of approximately A$3,582,000.
Payments to related parties and their associates during the quarter as outlined in Section 6.1 of the accompanying Appendix 5B to this quarterly activities report were A$102k. These payments are related to salaries, superannuation and Director's fees paid to directors and related entities during the December 2020 quarter.
Petroleum Tenement Holdings
As at 31 December 2020, 3D Oil's petroleum tenement holdings were:
VIC/P57 Offshore Gippsland Basin, VIC | 24.9% | nil | 24.9% |
WA-527-P Offshore Roebuck Basin, WA | 100% | nil | 100% |
Beneficial interest | Beneficial interest | Beneficial interest at | |
Tenement and Location | at 30 Sept 2020 | acquired / (disposed) | 31 Dec 2020 |
T/49P | 20% | nil | 20% |
Offshore Otway Basin, TAS | |||
VIC/P74 | 100% 1 | (50%) | 50% 1 |
Offshore Gippsland Basin, VIC |
1 On 4 October 2019, 3D Oil announced that Hibiscus Petroleum Berhad had elected to enter into a Joint Venture with 3D Oil in the newly awarded offshore Gippsland Basin permit VIC/P74. TDO will remain as operator with 50% equity when a JOA is signed by both parties and required government approvals. On 9 October 2020, 3D Oil announced that the National Offshore Petroleum Titles Administrator (NOPTA) approved Hibiscus Petroleum Berhad to enter into a Joint Venture with TDO in the offshore Gippsland Basin exploration permit VIC/P74. Under the terms of the Assignment Agreement, TDO will remain as operator with 50% equity.
This announcement is authorised for release by the Board of Directors of 3D Oil Limited.
For further information, please contact:
Noel Newell
Executive Chairman 3D Oil Limited
Phone: +61 3 9650 9866
Qualified Petroleum Reserves and Resources Evaluator Statement
The Prospective Resources estimates in this release are based on, and fairly represent, information and supporting documents prepared by, or under the supervision of Dr David Briguglio, who is employed full-time by 3D Oil Limited as Exploration Manager. He holds a BSc.Hons and PhD in Petroleum Geoscience and has been practicing as a Petroleum Geoscientist for 10 years. Dr Briguglio is qualified in accordance with ASX listing rule 5.41 and has consented in writing to the inclusion of the information in the form and context in which it appears.
Prospective Resources
The estimates have been prepared by the company in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2011 approved by the Society of Petroleum Engineer. Prospective Resource estimates are for recoverable volumes and unless otherwise stated this report quotes Best Estimates and gross volumes. The estimates are un-risked and have not been adjusted for both an associated chance of discovery and a chance of development. The Prospective Resources have been estimated with both probabilistic and deterministic methods.
Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity 3D Oil Limited ABN 40 105 597 279
Quarter ended ("current quarter") 31 December 2020
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| (2) - - (122) (90) - - (3) - - 32 | (19) - - (245) (313) - 4 (6) - - 77 |
(185) | (502) |
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) | entities | - | - |
(b) | tenements | - | - |
(c) | property, plant and equipment | (2) | (33) |
(d) | exploration & evaluation | (214) | (917) |
(e) | investments | - | - |
(f) | other non-current assets | - | - |
Page 1 |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| - - - - - - - - | - - - - - - - - |
(216) | (950) |
| - - - - - - - - (38) | - - - - - - - - (43) |
(38) | (43) |
4. Net increase / (decrease) in cash and cash equivalents for the period | ||
| 4,021 (185) (216) (38) | 5,077 (502) (950) (43) |
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (6 months) $A'000 |
| - | - |
3,582 | 3,582 |
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
| 3,582 - - - | 4,021 - - - |
3,582 | 4,021 |
6. Payments to related parties of the entity and their associates | Current quarter $A'000 |
- Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
7. Financing facilities
Note: the term "facility' includes all forms of financing
arrangements available to the entity.
Add notes as necessary for an understanding of the
sources of finance available to the entity.
7.1 Loan facilities
7.2 Credit standby arrangements
7.3 Other (please specify)
7.4 Total financing facilities
Total facility
Amount drawn at
amount at quarter
quarter end
end
$A'000
$A'000
- - - -
- - - -
7.5 Unused financing facilities available at quarter end
-
7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
8.
Estimated cash available for future operating activities
$A'000
8.1 8.2
Net cash from / (used in) operating activities (item 1.9)
(Payments for exploration & evaluation classified as investing
(185) (214)
activities) (item 2.1(d))
8.3 8.4 8.5 8.6
Total relevant outgoings (item 8.1 + item 8.2)
(399)
Cash and cash equivalents at quarter end (item 4.6)
3,582
Unused finance facilities available at quarter end (item 7.5)
-
Total available funding (item 8.4 + item 8.5)
3,582
8.7
Estimated quarters of funding available (item 8.6 divided by item 8.3)
8.98
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8
If item 8.7 is less than 2 quarters, please provide answers to the following questions:
8.8.1
Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
Answer: N/A
8.8.2
Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer: N/A
8.8.3
Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2
This statement gives a true and fair view of the matters disclosed.
Date:
29 January 2021
Authorised by: The Board
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
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Disclaimer
3D Oil Limited published this content on 29 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2021 08:50:05 UTC.
