The cash-strapped junior, best known for its unsuccessful attempts to develop the small West Seahorse field in the Gippsland Basin, now sold to Malaysia's Hibiscus Petroleum, and its focus on exploration drilling in the surrounding area believes getting involved in the Roebuck Basin is a "no-brainer".

 

"I will either be the smartest guy in the room or the stupidest guy in the room for this," 3D managing director Noel Newell told Energy News this morning.

 

"We looked at this area because Carnarvon [Petroleum] and Quadrant [Energy] have found a rich petroleum system, and if you could go back in time and have a chance to get in on the ground floor in the Barrow area 50 years ago you would have killed for it.

 

"That's what we're hoping for here. 

 

"We put a low-ball in and we were successful, and now we're going to have talks with the people who are near us to see if we can piggyback off what they do."

 

Quadrant is believed to be considering further seismic, and Pathfinder Energy, which has blocks to the north-west has a seismic commitment to meet.

 

Pathfinder has so far been unable to transform excitement from the new Triassic oil and gas play fairway into a seismic farm-out yet, even despite the presence of massive leads such as Pina Colada, one the largest undrilled structure defined on the emerging Keraudren fairway with a potential for 250 million barrels and several trillion cubic feet of gas.

 

Newell knows the farm-out market will be tough. 

 

He has been trying to interest the majors in a potential new petroleum system in Tasmania waters, but partners for T/49P (100%) have been elusive, particularly since Beach Energy pulled out.

 

"We've had a lot of people look at this block, but it's hard to get any deal over the line because no one has any money to do deals, but the geological story is so good that we're keeping on trying.

 

"We think we have a good story, with the gas coming up from Geographe-Thylacine into our area, and the prospects and leads we have on 3D are huge, and eventually we'll get a partner."

 

3D has just $3 million in the bank, but as Newell points out the company hasn't raised capital since 2008, and has every expectation of being able to fund its modest commitments in both the Otway Basin and the Bedout Sub-basin.

 

"In that time we've been able to drill three wells and shoot four seismic surveys, all at a cost of $120-130 million, so we think we'll be able to pull a rabbit out of a hat when we need the money," he said.

 

WA-527-P covers 6590sq.km with average water depths of 120m. It was previously held by Carnarvon as WA-443-P.

 

The area was secured by Carnarvon in 2011, a year after it picked up its first Roebuck Basin blocks with Finder Exploration, but it considered the area was less attractive, despite defining the Jaubert lead on the southern edge of the permit, adjacent to the Short Arm lead in the neighbouring WA-438-P.

 

Carnarvon's work the faulted anticlinal Middle Triassic closure at Jaubert, which was initially considered comparable to the Phoenix group of potentially large gas accumulations was downgraded after a 1400km 2D seismic interpretation study.

 

3D has done its own work and identified multiple leads already in the undrilled block, which is only covered by a broad grid of 2D seismic data. The closest well to the new permit is Bedout-1. 

 

The working theory is that the same formations that have generated and trapped oil and gas in the Phoenix South and Roc fields will extend into WA-527-P. 

 

The initial focus will be on the Lower Keraudren Formation, the Caley Sandstone and the Barret Sandstone.

 

Quadrant is planning to drill Dorado-1 later this year, and a discovery could help illuminate the potential of the Bedout Sub-basin further, as every well drilled to date has resulted in some unexpected surprises to the upside. 

 

3D will need to spend just $800,000 over the next two years on geophysical and geological studies, with the big money due in year three: a $3 million commitment to acquire and process 510sq.km of new 3D seismic data.

 

A well would be required in the optional fourth year. 

 

3D shares were steady at 3.6 cents this morning.