3D Oil (ASX: TDO) is modelling the potential migration of oil into the western side of its offshore Western Australian exploration permit, encouraged by the recent Dorado-1 oil and gas condensate discovery made by neighbouring operator Quadrant Energy.
The Australian exploration junior today reported that following the nearby find, it has completed further sub-surface analysis on its wholly-owned exploration permit WA/527-P.
According to the company, initial results have indicated a geophysical response characteristic of the Caley and Milne sands throughout the south-western portion of the permit, with excellent reservoir quality expected to be similar to those encountered in Dorado-1.
3D Oil is also currently constructing a new thermal and migration model and said preliminary modelling has predicted the likelihood of oil migrating into the western side of WA/527-P.
The Dorado-1 well is located in the Bedout Sub-basin off the northern coast of WA, about 80km south-west of 3D Oil’s permit. Large private company Quadrant operates the project with an 80% interest while Carnarvon Petroleum (ASX: CVN) holds the remaining 20% stake.
Last month, Carnarvon announced the recovery of light oil from an excellent reservoir containing a 96.1m gross hydrocarbon package with a net pay thickness of 79.6m. The discovery was made in the primary target of the well, the Caley Member sands.
A week later, Carnarvon announced a second find – this time in the top of the Baxter Member sandstone – with samples recovering an estimated gross hydrocarbon package of 21m and a net pay thickness of 10.5m.
According to 3D Oil, this significant discovery has “materially re-shaped” the existing geological interpretation of the Bedout Sub-basin, demonstrating that the Lower Triassic sands could potentially host significant hydrocarbon accumulations within multiple reservoir intervals.
3D Oil’s hydrocarbon migration model will take account both the Dorado-1 results and the “excellent quality oil-prone source rocks” noted by Quadrant to be present in the Lower Triassic sands.
3D Oil has identified at least 15 leads across its acreage via a 2D seismic survey as well as other open-file 2D seismic data.
Along with the prospective Lower Triassic play, the company’s leads include a series of apparent Paleozoic carbonate build-ups present within the eastern side of the permit, and multiple targets within the shallower Jurassic section.
3D Oil shares had surged more than 57% to A$0.165 by mid-afternoon trade.