3D Energi Soars 43% After Confirming Two Gas Bearing Reservoirs

3D Energi Leaps 43% on Gas Intersection Update, Encouraging but Not Yet a Commercial Discovery

3D Energi (ASX: TDO) delivered a sharp move today, climbing 43% after reporting technically significant gas intersections. The market clearly responded to the confirmation of two gas bearing Waarre reservoirs with strong net pay, which gives investors more confidence in the geological model. At the same time, it is important to recognise that the result is not yet commercially material. The real commercial story still depends on the pending Ora formation testing. Until that data comes through, these results should be viewed as encouraging, not a discovery. In our view, the announcement strengthens the early technical case but the commercial pathway remains tied to what the Ora interval ultimately delivers.

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Essington 1 Confirms Two Gas-Charged Zones

Essington 1 has intersected two gas-charged zones that sit comfortably in line with expectations, supported by clear gas peaks, resistivity kicks and pressure-backed gas gradients. For investors trying to understand the materiality of this update, the short answer is yes. These are genuinely material results. The net pay is thick across both intervals and reinforces the geological model that 3D Energi has been guiding toward.

3D Energi Story

For newer investors following the story, 3D Energi is a small-cap oil and gas explorer that typically partners with larger operators to fund high-cost offshore drilling in the Otway Basin. The company can generate value in two ways. First, by selling down part of its interest in a discovery for upfront cash. Second, by retaining a working interest and earning its share of revenue from eventual gas sales to domestic industrial customers. For example, if future development produced 100 terajoules per day and 3D held a 20% stake, it would receive the revenue linked to 20 terajoules.

The Otway Exploration Drilling Takeaway For invetsors

The Otway Exploration Drilling Program sits at the centrepiece of the 3D Energi investment case. The plan involves up to six wells across two phases, and importantly, the program is fully funded. A major part of that funding strength comes from the ConocoPhillips carry and past equity placements. ConocoPhillips is covering up to US$65 million of drilling costs, which provides meaningful risk sharing, reduces capital pressure on 3D Energi, and brings world-class technical oversight to every stage of the program.

On the financial side, there are no immediate red flags. The company carries no debt and holds roughly A$800 thousand in cash. This gives 3D Energi around four months of runway before a capital raise becomes necessary, which is a point shareholders should keep in mind as the campaign progresses. In our view, the balance sheet is stable enough for the near term, but investors should expect funding discussions to reappear once the next phase of work begins.