3D Energi, a junior explorer involved in ConocoPhillips’ gas exploration venture offshore Victoria, has suspended its shares from trading on the ASX. This action follows a default notice from ConocoPhillips requiring 3D Energi to pay approximately $US2.5 million ($3.62 million) by February 6, a demand the company is currently unable to meet. An additional $US5.3 million is also due, potentially triggering a further default notice. 3D Energi specialises in offshore oil and gas exploration, focusing on identifying and developing prospective resources. The company partners with larger operators to explore and extract valuable energy reserves.
The company stated the trading suspension is necessary while it addresses its funding position and the implications of the payment default on its stake in the permit. The funding crisis arose despite a notable gas discovery at the Essington-1 well in November, the first of two exploration wells in the ConocoPhillips-led campaign.
According to 3D Energi, the increased costs at Essington-1 resulted from extensive testing following the gas discovery. Additional expenses were also incurred at the second well, Charlemont-1, due to weather delays and technical issues encountered during drilling operations.
3D Energi holds a 20 per cent interest in the drilling venture, with Korea National Oil Corporation also participating as a partner. Before the trading halt on January 8, 3D Energi’s shares were trading at 8¢.
