Australian Gas Explorer 3D Oil to Commence Farmout of Offshore Tasmania Permit

Taking projections of strong gas demand in eastern Australian market into consideration, 3D Oil (TDO) has embarked upon a farmout process to engage with large petroleum companies to assist with funding the next phase of exploration in T/49P in Otway basin offshore Tasmania.

In the T/49P permit 3D Oil holds a 70 percent interest and operatorship in joint venture with Beach Energy. The permit is located immediately southeast of the largest producing gas field in the Otway Basin and contains a number of prospective features for gas exploration. It covers an area of 4,960 km2 in water depths generally no greater than 100m.

“Eastern Australia gas is one of the few energy markets in the world that can point to a strong demand environment and so, despite the current low oil price environment and its impact on the exploration industry, TDO believes T/49P is well positioned to attract investment from the industry – be it domestic or international,” the company said in a statement.

TDO’s estimate for Prospective Resources in T/49P is 6.82 TCF (best estimate) with the Flanagan Prospect alone 1.38 TCF (best estimate).

Last month, a report published by Australian Energy Market Operator (AEMO) stated that gas reserve development is required by 2019 to maintain long-term gas supply adequacy in eastern and southeastern Australia. AEMO’s 2016 Gas Statement of Opportunities (GSOO) shows that developed gas reserves in eastern and southeastern Australia are only sufficient to meet forecast gas demand until 2019.