3D OIL LIMITED - ASX: TDO

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Description

3D Oil’s formation was motivated by an initial focus on the Gippsland Basin which has been one of the most prolific oil and gas producing region in Australia. The Company’s strategy is to target a combination of favourable technical and commercial considerations including:

* the availability of a high quality 3D seismic survey over the Northern Margin of the Gippsland Basin;
* the current oil market favouring the development of underexploited oil fields; and
* the opening up of the Victorian gas market favouring the development of underexploited gas fields.

Initially the Company aims to appraise and develop the Proved and Probable Reserves and Contingent Resources in the West Seahorse oil field totalling 10.3MMstb (on a best estimate basis) of which approximately 85% is within VIC/P57. The West Seahorse Field is located approximately two kilometres to the west of the producing Seahorse Oil Field and flanked by several other fields including the Wirrah and Moonfish Oil Fields. Upon the successful completion of the West Seahorse-3 well the Company intends to commence Front End Engineering and Design (FEED) and review funding options for the development of the Field. It is anticipated that the construction of the production facilities would commence in 2008.

The oil in the West Seahorse Field is typical of the Gippsland Basin fields, and the Company anticipates that oil will be easily producible. It is a light crude (48° API) with a low gas to oil ratio and anticipated strong water drive within the reservoir.

The Company also plans to drill an exploration well at the Sea Lion Prospect with Prospective Resources of 20.7 MMstb (best estimate) in the Gippsland Basin Permit. Exploration for oil and gas assets in VIC/P57 will benefit from the 2003 Northern Margin 3D seismic survey which covers approximately 70% of the Permit revealing an array of prospects and leads including Sea Lion and the Felix Prospect. The Prospective Resources for the Felix Prospect is 6.9 MMstb (best estimate).

In the Bass Basin Permit the Company plans to acquire 2D Seismic to rank and select a candidate for drilling. The Permit is located approximately 60 kilometres to the east of the Yolla Field which has published reserves of 330 PJ of sales gas, and 28 MMbbl of oil and condensate. Of the five leads currently identified within T41-P, the Darymple Lead displays a strong seismic anomaly characteristic of a gas accumulation. The unrisked Prospective Resources for the Darymple Lead are 74 STOIIP MMstb (best estimate) or 75 GIIP Bscf (best estimate).

Mine For

oil, gas

Location of operation(s)

Victoria, Tasmania

Australian Basins

Gippsland, Bass

Address

Level 5, 164 Flinders Lane
MELBOURNE, VIC, AUSTRALIA

Phone

(03) 9650 9866

Email

Website

http://www.3doil.com.au/

Last Updated

21/01/2011