3D Oil (ASX:TDO) nears completion of oil handover to ConocoPhillips – The Market Herald

• 3D Oil (TDO) enters into joint operating agreement to meet key production condition VIC/P79
• An agreement has been signed with ConocoPhillips Australia in relation to the Victorian offshore permit VIC/P79, which will be completed subject to government approval
• Under the terms of the agreement, 3D Oil will receive US$3 million (A$4.8 million) in cash in exchange for ConocoPhillips’ acquisition of an 80 percent interest in the permit and operating rights.
• In addition, ConocoPhillips will cover up to US$35 million in well drilling costs
• 3D Oil ends the day in the red to close at 5.9 cents

3D Oil (TDO) has entered into a joint venture agreement to meet the key VIC/P79 production condition.

An agreement has been signed with ConocoPhillips Australia in relation to offshore Victorian Permit VIC/P79. The completion of the farm will take place after the approval of the government.

Under the terms of the exit agreement, 3D Oil will receive a cash payment of US$3 million (A$4.8 million) in exchange for ConocoPhillips acquiring an 80 percent interest in the permit and operator rights.

In addition, ConocoPhillips will cover up to US$35 million in well drilling costs, after which it will contribute 20 percent of the well costs in accordance with the permit share.

3D Oil said the second deal with ConocoPhillips is an “excellent result” for the company and called it the “ideal partner” for permit drilling.

The timing of the contract coincides with other potential activities in the Otway Basin. This farm builds on a previously announced agreement with ConocoPhillips Australia to enter T/49P, also as an 80 percent owner.

3D Oil ended the day in the red to close at 5.9 cents.