BEACH Energy will take an additional 10 per cent stake in the T/49P permit in the Otway basin, offshore Victoria, after agreeing to pay more of the costs of the Flanagan 3D seismic survey currently taking place.
The change will see Beach Energy hold a 30% stake in the 496,000 hectare permit, while the remaining 70% will be held by 3D Oil.
“This current deal with Beach allows [3D Oil] to retain a large pre-drilling interest and operatorship in T/49P, while reducing cash exposure and at the same time acquiring additional seismic coverage over the targeted T/49P leads,” 3D Oil said.
The final cash contribution of both parties will be determined by the final cost of the acquisition and processing of the survey, 3D Oil said, noting that the area of data to be acquired had recently expanded by 21,900 hectares to 97,400 hectares in total.
Survey vessel the Polarcus Asima is towing 10 recording streamers in an array about one kilometre wide and six kilometres long in order to record seismic data for the survey.
Taking place in an area northwest of King Island, the survey is designed to mature a number of leads in the northern part of the block, located adjacent to the producing Thylacine and Geographe gas fields.
3D Oil managing director Noel Newell said the technical and commercial fundamentals of gas exploration in the area were strong.
“We consider the fact that a large Australian operator like Beach Energy has increased its stake in T49P is a strong validation of the potential of permit,” he said.
“It is also gratifying that Beach has confidence in our joint venture and in TDO’s operatorship of the permit.”