3D Oil Limited (“3D Oil”), has signed a Heads of Agreement with a consortium of five other companies, to undertake 2D seismic operations in the Bass Strait region.

The consortium is now engaged in discussions with two vessel operators to carry out the work and is confident a vessel will be secured in the 3rd quarter of 2007.

3D Oil was recently granted a 12 month suspension by the Joint Authority in relation to the Year 2 work commitment in its Bass basin permit T41-P. The work program consists of acquisition of 2200km of 2D seismic data. As with many offshore operators in Australia, 3D Oil has experienced difficulty in locating a seismic vessel.

Over the last few years, the Bass basin has emerged as an exciting new hydrocarbon province. The Yolla field is now on production and there are potential future developments at the White Ibis and Trefoil discoveries. The industry has recognised the potential of the basin with aggressive bidding in the recent acreage releases and acreage is now tightly held. In the next three years, 12 wells are planned in the basin.

Managing director, Noel Newell said, “3D Oil is very optimistic about the prospectivity of the Bass Basin and we believe our permit has all the ingredients for success. The Darymple Lead has a seismic signature that we are very excited about. We picked up the permit prior to the recent aggressive bids on a modest work program.”