ConocoPhillips buys 3D Energi stake for US$19.8M
- ConocoPhillips intends to acquire 3D Energi out of their joint exploration permit off the Victorian coast.
- 3D Energi will receive US$19.8 million for its 20% stake following an independent valuation.
- The buyout resolves a dispute after drilling cost overruns led to a default notice against 3D Energi.
ConocoPhillips (NYSE:COP) announced its intention to acquire the remaining 20% stake in exploration permit VIC/P79 off the Victorian coast from 3D Energi (ASX:TDO) for US$19.8 million.
The buyout follows a long-running dispute over asset valuation after exploration drilling costs exceeded budget, leaving 3D Energi unable to make required payments.
"The price was determined by an independent valuer after the two failed to agree during a period of negotiation," stated a spokesperson.
Melbourne-based 3D Energi had sought at least double the determined amount for its stake, but the default notice issued by operator ConocoPhillips in January forced the equity sale.
The transaction will increase ConocoPhillips' holding in the offshore Otway Basin permit to 71 per cent alongside partner Korea National Oil Corporation at 29%.
Following the announcement, the 3D Energi share price was unchanged at $0.08 after being suspended from trading since January.
Further work is currently under way to assess the development potential of the gas discovered in the permit last year.
ConocoPhillips stated that the joint venture aims to eventually bring the newly discovered offshore gas into the Australian domestic market.
