Hibiscus Petroleum Bhd’s 7.43%-owned 3D Energi Ltd announced on Wednesday that it has unexpectedly discovered gas in the Waarre C sandstones, Charlemont Trend, Otway Basin in Australia.
3D Energi disclosed to the Australian Securities Exchange that the gas discovery was made after recovering a representative gas sample from the thin Waarre C sandstone during Phase 1 of the Otway exploration drilling programme.
The Charlemont-1 well is located within the VIC/P79 exploration permit in the offshore Otway Basin.
3D Energi holds a 20% participating interest in the VIC/P79 permit. ConocoPhillips Australia is the operator with a 51% stake, while Korea National Oil Company, South Korea’s state-owned oil and gas company, holds the remaining 29% interest in the project.
Charlemont-1 represents the second gas discovery under the Otway Exploration Drilling Program, following the recent Essington discovery.
3D Energi said Charlemont-1 well will now be plugged and abandoned in accordance with the approved drilling Environment Plan, concluding Phase 1 of the drilling programme.
Further analysis and evaluation are required to determine the commercial viability of the phase 1 gas discoveries, and no decisions have been made regarding progression to development, it added.
In a statement, 3D Energi executive chairman Noel Newell said phase 1 of the Otway Exploration Drilling Program has identified important new natural gas resources close to existing offshore gas production and processing infrastructure in the Otway Basin, supplying the Australian domestic gas market.
“This enhances the strategic significance of the discovery and supports future development optionality, subject to further technical and commercial evaluation, consistent with the company’s objective of contributing new gas supply to a tightening East Coast market,” Newell added.
Meanwhile, 3D Energi said there is potential to drill additional wells as phase 2 of the Otway Exploration Drilling Program under the approved Environment Plan. However, no decision has been made at this stage, and further evaluation will be required before confirming any next steps.
At 3.14pm, Hibiscus Petroleum’s share price was unchanged at RM1.60, bringing the group’s market capitalisation to RM1.18 billion.
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