3D Energi’s Charlemont-1 Well Reveals Probable Gas Reservoirs Offshore Otway Basin

3D Energi’s Charlemont-1 exploration well has intersected probable gas reservoirs in multiple Waarre sandstone layers offshore Victoria’s Otway Basin, marking a promising step in the company’s exploration program.

  • Probable gas presence detected in Waarre C, B, and A sandstone reservoirs
  • Elevated gas readings and resistivity logs indicate hydrocarbons
  • Drilling halted early due to higher-than-expected formation pressures
  • Further wireline logging planned to assess reservoir extent and connectivity
  • Findings may de-risk up-dip prospects along the Charlemont Trend including La Bella
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Exploration Update from the Otway Basin

3D Energi Limited has provided an encouraging update on its Charlemont-1 gas exploration well, located offshore in the Otway Basin, Victoria. The well, targeting the Charlemont B Prospect approximately 55 kilometres from Port Campbell, has intersected probable gas reservoirs across multiple sandstone layers within the Waarre formation. This includes the Waarre C, B, and A sandstones, with elevated gas readings and resistivity logs consistent with hydrocarbon presence.

Operational Challenges and Early Drilling Cessation

Drilling operations commenced in December 2025 but were paused upon encountering higher-than-anticipated formation pressures in the Waarre C zone. After installing a liner, drilling resumed but was ultimately halted approximately 70 metres shallower than planned, at 2753 metres measured depth, due to operational safety limits related to these pressures. This early cessation introduces some uncertainty regarding the full extent of the reservoirs, but the presence of gas across stacked sandstone layers is a positive indicator.

Next Steps, Wireline Logging and Evaluation

To better understand the quality and connectivity of the hydrocarbons, 3D Energi is evaluating scenarios for further wireline logging operations. These detailed measurements will be critical to confirm the nature and extent of the gas reservoirs and to assess potential links between the Waarre C, B, and A zones. The company remains optimistic about progressing to the evaluation phase based on these early results.

Broader Implications for the Charlemont Trend

The Charlemont B Prospect is part of a chain of prospects culminating in the La Bella gas discovery, located about 7 kilometres to the east. The identification of probable hydrocarbons in the Waarre C, a zone not previously expected to contain gas, could have positive implications for other up-dip prospects along this trend. This may enhance the prospectivity of areas that currently lack direct seismic hydrocarbon indicators, potentially expanding the resource base in the Otway Basin.

Strategic Partnerships and Outlook

3D Energi holds a 20% interest in the VIC/P79 exploration permit, with ConocoPhillips Australia as operator holding 51%, and Korea National Oil Company holding 29%. Executive Chairman Noel Newell expressed excitement about the early indications of gas presence and the potential for this cluster of reservoirs to become one of the largest gas pools in the basin if successfully appraised. The company plans to provide further updates as key operational milestones are reached.

Bottom Line?

As 3D Energi prepares for detailed reservoir evaluation, the Otway Basin’s gas potential looks increasingly promising but hinges on forthcoming wireline data.

Questions in the middle?

  • What will wireline logging reveal about the true extent and connectivity of the gas reservoirs?
  • How might these findings impact resource estimates and development timelines for the Charlemont Trend?
  • Could the unexpected gas in the Waarre C sandstone open new exploration targets in the Otway Basin?