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3D Oil farms out exploration permit to ConocoPhillips Australia

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Oilfield Technology,


3D Oil (TDO) has announced that TDO’s wholly owned subsidiary, 3D Oil T49P has completed the farm-out of T/49P in the offshore Otway Basin to ConocoPhillips Australia (COP) following the approval of documentation by the National Offshore Petroleum Titles Authority (NOPTA).

Under the terms of the joint operating agreement (JOA), COP will hold an 80% interest in the permit and become operator. As previously announced, pursuant to the farm-out agreement (FOA), TDO will receive a AUS$5 million cash payment in recognition of previous permit expenditure and COP will 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.

Upon completion of the acquisition, processing and interpretation of the 3D seismic survey, COP may elect to drill an exploration well which will fulfill the current Year 6 work programme obligation. In the event COP elects to drill such exploration well, TDO 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.

Read the article online at: https://www.oilfieldtechnology.com/exploration/11062020/3d-oil-farms-out-exploration-permit-to-conocophillips-australia/

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