Essington-1 and Charlemont-1 Wells Confirmed as KNOC Joins Otway JV

Funding Secured for Key Otway Basin Drilling

3D Energi Limited has taken a significant step forward in its exploration campaign by completing a $9.4 million placement to fund the drilling of the Essington-1 well, the first of two planned wells in the Otway Basin’s VIC/P79 permit. This capital injection, strongly supported by both new and existing institutional investors, ensures the company is well positioned to meet its financial commitments for the upcoming drilling phase and maintain operational momentum.

Drilling Plans and Operational Readiness

The company has confirmed Essington-1 and Charlemont-1 as the two exploration targets for Phase 1 of the Otway Exploration Drilling Program (OEDP). Preparations are well underway, with vessel pre-lay operations for anchors and mooring chains already commenced ahead of the Transocean Equinox rig’s mobilisation. Drilling at Essington-1 is expected to start around the last week of October 2025, with operations anticipated to take approximately 32 days to reach a planned depth of around 2,650 meters.

Strategic Joint Venture Strengthened by KNOC Entry

The joint venture overseeing the Otway permits has been bolstered by the completion of a farm-in agreement whereby Korea National Oil Corporation (KNOC) acquired a 29% interest, joining ConocoPhillips Australia (COPA) which retains operatorship with a 51% stake. 3D Energi maintains its 20% interest. KNOC’s entry not only brings additional capital but also technical expertise, enhancing the joint venture’s capacity to advance exploration and potentially accelerate development timelines.

Prospective Resources and Exploration Outlook

Essington-1 is considered a low-risk prospect with strong geological indicators, including direct hydrocarbon indicators and a 68% chance of success at its primary target reservoir. The well targets an estimated mean gross prospective resource of 262 billion cubic feet of gas, with 52 billion cubic feet net to 3D Energi. Charlemont-1, with an 81% chance of success and a net prospective resource of 19 billion cubic feet, follows as the second well in the program. Both prospects are strategically located near existing infrastructure, potentially enabling faster commercialisation if discoveries are made.

Broader Exploration and Regulatory Progress

Beyond the Otway Basin, 3D Energi is advancing seismic acquisition plans in the Northwest Shelf’s Bedout Sub-Basin, aiming to mature prospects through the Sauropod 3D seismic survey. Regulatory approvals are progressing for these activities, including environmental plans under assessment by NOPSEMA. The company continues to seek farm-in partners to support exploration funding in this region, leveraging improved market conditions and regional momentum.

Financial Position and Outlook

At the end of the quarter, 3D Energi held cash reserves of approximately A$141,000, with net operating and investing cash outflows reflecting ongoing exploration activities. The recent placement significantly strengthens the company’s financial position, enabling it to fund its near-term drilling commitments and maintain working capital. Executive Chairman Noel Newell emphasises that the company is entering a transformational phase, supported by disciplined capital allocation and strategic partnerships.