• NOPTA approves the transfer of title of an 80% equity in the T/49P exploration permit to ConocoPhillips Australia which now completes the farmout transaction
• 3D Oil will receive cash payment of A$5 million within two weeks.
• ConocoPhillips Australia will acquire at least 1580 sq km of 3D seismic in T/49P at no cost to 3D Oil
• ConocoPhillips Australia may elect to drill an exploration well in which it will carry up to the first US$30 million of costs
• 3D Oil is well placed to take advantage of a gas fueled economic recovery from the COVID-19 crisis

3D Oil has completed the farmout of T/49P to ConocoPhillips Australia SH1 Pty Ltd (“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”), the Company will receive a A$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 sq km within the Permit to which the Company 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, the Company 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.

The completion of the farmout of T/49P to COP places TDO in a unique and enviable position for a small cap company –where there is a clear pathway to ultimately supplying gas to the East Coast Market. The company is very positive about its prospects. While global conditions are ery challenging the potential for gas commercialization in Eastern Australia are very promising. TDO believes these conditions create opportunities for the company to exploit.

The company is firmly focused on becoming a supplier to the burgeoning East Coast Gas market at a time of unique dynamics in local and global gas markets.

KeyFacts Energy: Australia company/country profiles:   3D Oil*   l   ConocoPhillips*

* Premium profile information includes; description, overview of assets, current and planned operational activity, capex, local and corporate locations, news archive, farm-in opportunities and 'one-click' access to company 'Linkedin People'.