Highlights • 3D Oil has completed further sub-surface analysis following the Dorado-1 discovery • Initial results indicate a geophysical response characteristic of the Caley and Milne sands throughout the south-western portion of WA/527-P, with excellent reservoir quality expected to be similar to those encountered in Dorado-1 • A new hydrocarbon migration model is being constructed following the Dorado-1 results with preliminary modelling predicting a strong potential for the migration of oil into the western side of WA/527-P 3D Oil Limited (ASX: TDO, “3D Oil” or the “Company” is pleased to provide a progress update on its 100% owned exploration permit WA/527-P, located in the Bedout Sub-basin, approximately 80km north-east of the significant recent Dorado-1 oil discovery (Carnarvon Petroleum 20%, Quadrant Energy 80%).
WA/527-P is a large permit covering approximately 6,500 km2 in the Bedout Sub-basin. 3D Oil has identified at least fifteen leads across the permit, using a combination of open-file 2D seismic data and the Searcher Seismic Multi-client Bilby 2D seismic survey. The leads are considered to be prospective for oil and will form the focus of our farm-out campaign.
The discovery of significant oil and gas-condensate at Dorado-1 has materially re-shaped the existing geological interpretation of the Bedout Sub-basin. The discovery illustrates that the Lower Triassic sands can host significant accumulations of hydrocarbons within multiple reservoir intervals.
Recent publications made by Quadrant Energy to leading Australian Oil & Gas Journal APPEA indicate that the Lower Triassic contains excellent quality oil-prone source rocks (Woodward et al. 2018). 3D Oil is conducting a new thermal and migration model which integrates these source rock parameters
Page | 2
with the Dorado-1 results. The initial results from the migration model indicates the potential for significant hydrocarbon available to the western side of our adjacent 100%-owned permit WA/527-P, located along the margin of the Bedout Sub-basin.
Figure 1: WA/527-P Location, recent oil & gas discoveries and the Basin Margin
Geological overview
The Bedout Sub-basin is located between the Northern Carnarvon and Browse basins, along the prolific northwest shelf of Australia. In recent years and exploration campaign by the Quadrant Energy, Carnarvon Petroleum (ASX: CVN) and Finder Exploration Joint Venture has resulted in the discovery of an exciting new petroleum system located in permits adjacent to 3D Oil’s 100%-owned WA/527-P.
The Dorado-1 well confirmed the presence of good quality and hydrocarbon bearing reservoir sands within multiple intervals of the Lower Triassic including the Caley, Baxter, Crespin and Milne members with a total aggregated net pay of 132m (refer to the Carnarvon ASX release dated 8 August 2018). This supports 3D Oil’s existing interpretation that reservoir quality towards the margin of the basin, situated within an analogous setting to WA/527-P would be high, but also proves the presence of multiple competent sealing units. It is still uncertain as to how far this configuration extends along the basin margin, however, 3D Oil’s licensed subset of the Bilby 2D Multi-Client Survey indicates that high amplitude reflectors characteristic of the Caley and Milne members exist within WA/527-P. Figure 2 illustrates a cross-section of the reservoir sands in the Lower Triassic, importantly the western side of WA/527-P is considered to be within an analogous setting to the Keraudren-1 well.
Adrian Cook, Managing Director of Carnarvon Petroleum stated yesterday “the oil in Dorado and potentially adjacent structures will now become our immediate focus. And we expect this to be highly profitable for shareholders in due course.”
Page | 3
Figure 2: Triassic potential of the Bedout Sub-basin (Woodward et al. 2018)
In addition to the prospective Lower Triassic play, 3D Oil has identified multiple leads within other play levels (Figure 3). These include a series of apparent Paleozoic carbonate build-ups present within the eastern side of the acreage and multiple targets within the shallower Jurassic section.
Figure 3: WA/527-P Leads
Page | 4
Table 1: WA/527-P Prospective Resource Estimate (MMbbls) Recoverable Oil (ASX ann. 26/2/18) Prospect Status Low Best High Salamander Lead 57 191 713 Jaubert Lead 17 72 205 Whaleback Lead 16 87 219 WA/527-P Arithmetic Total 90 349 1,138 The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons
is pleased to provide a progress update on its 100% owned exploration permit WA/527-P, located in the Bedout Sub-basin, approximately 80km north-east of the significant recent Dorado-1 oil discovery (Carnarvon Petroleum 20%, Quadrant Energy 80%).
