3D Energi’s $9.4M Placement Sets Stage but Drilling Risks Remain

Capital Raise to Propel Exploration

3D Energi Limited (ASX – TDO) has successfully secured firm commitments to raise $9.4 million before costs through a share placement priced at 11 cents per share. This capital injection is designed to fully fund the upcoming drilling of the Essington-1 well, the first in a two-well exploration campaign targeting gas resources in Victoria’s Otway Basin.

The placement attracted robust interest from a mix of new domestic institutional investors alongside existing shareholders, signaling confidence in 3D Energi’s exploration strategy. Notably, Executive Chairman Noel Newell is set to participate with a $0.2 million subscription, subject to shareholder approval at the company’s Annual General Meeting scheduled for November 19, 2025.

Incentivising Investors with Options

As part of the placement, investors will receive one free attaching unlisted option for every two shares issued. These options, exercisable at 18 cents each within 12 months, are also subject to shareholder approval. This sweetener aims to provide additional upside potential for investors, aligning interests as the company advances its drilling program.

The placement shares will rank equally with existing shares and are expected to be allotted by mid-October, with settlement anticipated on October 10. The director’s participation and option issuance will follow post-AGM approval.

Essington-1 – A Low-Risk Gas Prospect

The Essington-1 well is scheduled to spud as early as mid-October 2025. It targets a material and relatively low-risk gas resource, the result of over a decade of technical work to derisk and mature a portfolio of prospects in the Otway Basin. The well is part of a joint venture with industry heavyweights ConocoPhillips and Korea National Oil Corporation (KNOC), underscoring the project’s strategic significance.

Success at Essington-1 is expected to be a critical catalyst, influencing both the timing and pricing of the next funding tranche required for the second well, Charlemont-1. The latter has an estimated cost exceeding $12 million, which the company is actively seeking to secure through ongoing discussions with potential strategic investors.

Strategic Outlook and Market Positioning

3D Energi’s Executive Chairman, Noel Newell, highlighted the importance of this campaign in addressing a growing gas market shortfall. The company’s prospects are well positioned near existing infrastructure, which could facilitate timely market entry if drilling results prove positive. This capital raise not only funds immediate exploration but also strengthens the company’s working capital position as it navigates the next phases of development.

With drilling imminent and investor backing solidified, 3D Energi stands at a pivotal juncture. The market will be watching closely as the Essington-1 well results unfold, potentially reshaping the company’s valuation and strategic trajectory.