3D Energi Flags Funding Strain After Costly Otway Gas Discoveries

3D Oil Limited ( (AU:TDO) ) has shared an announcement.

3D Energi Limited has reported that total costs for its Phase 1 Otway drilling program in the VIC/P79 permit, covering the Essington-1 and Charlemont-1 exploration wells, have significantly exceeded pre-drill estimates, leaving the company with an outstanding joint venture cash-call balance of about US$2.5 million and further forecast expenditure of roughly US$5.3 million. Unable to meet these obligations at present, the company has received a default notice from the joint venture operator, is suspending trading of its shares while it addresses funding options, and faces potential dilution or buy-out of its 20% interest under standard joint operating agreement default provisions, highlighting near-term financial and ownership-risk pressures despite recent operational success.

Operationally, Phase 1 has delivered two gas discoveries that extend the established Otway gas fairway into VIC/P79, with Essington-1 confirming gas in the Waarre C and Waarre A reservoirs—marking the Otway Basin’s first gas discovery since 2021—and Charlemont-1 encountering gas in the shallow Waarre C and deeper Waarre A intervals, underpinning the prospectivity of the Charlemont trend and cluster. Essington lies about 12 kilometres from existing pipeline infrastructure and early data indicate relatively low CO₂ content and associated liquids, positioning these discoveries as potentially attractive additions to future east coast gas supply, subject to further technical and commercial appraisal, regulatory approvals and the company’s ability to maintain its stake and secure development funding.

The most recent analyst rating on (AU:TDO) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on 3D Oil Limited stock, see the AU:TDO Stock Forecast page.

More about 3D Oil Limited

3D Energi Limited is an Australian oil and gas exploration company focused on offshore prospects in the Otway Basin, where it participates in joint ventures targeting natural gas resources for the east coast domestic market. The company holds a 20% participating interest in the VIC/P79 exploration permit alongside ConocoPhillips Australia and Korea National Oil Corporation, leveraging proximity to existing production infrastructure to potentially shorten development timelines for successful discoveries.

Average Trading Volume: 3,047,189

Technical Sentiment Signal: Sell

Current Market Cap: A$41.94M

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