Shares in 3d Energi Ltd (ASX: TDO) were trading more than 10% higher on Monday after the company announced its second gas discovery in as many months off the Victorian coast.
The junior explorer said in a statement to the ASX that its Charlemont-1 well, which started drilling on Christmas Day, "unexpectedly" hit a zone of gas above its intended target zone.
The company went on to say:
On 25 December 2025, the Charlemont -1 well intersected significant gas shows approximately 160 meters above the primary target. At 2,552 meters, pressures were higher than anticipated and drilling was temporarily paused to assess potential adjustments to the well design, including options to continue to drill to the primary target. Predrill evaluation of the Charlemont-1 prospect did not anticipate intersecting gas at this shallower level.
New well design might be needed
3D said activities were currently underway to assess potential adjustments to the well design to allow drilling to continue to the target zone.
3D Energy is a 20% equity holder in the drilling program, with the operator ConocoPhillips Australia holding 51% and Korea National Oil Company owning 29%.
The news follows 3d reporting in late November that ConocoPhillips had struck gas while drilling the Essington-1 well, also in the Otway Basin off the Victorian coast.
3D said in a statement to the ASX on November 17 that the Essington-1 drilling program had intersected two gas bearing reservoirs, with one having 58.5 metres of net gas pay while the second had 31.5 metres.
Analysis shows good recoverability
Follow-up testing of that discovery found that there was "moderate to excellent reservoir quality" at that site, "confirming the presence of moveable, producible gas-condensate within better- developed sandstone units of the Waarre A reservoir''.
3D chair Nowell Newell said at the time:
A gas-condensate discovery with strong support for reservoir deliverability in an incredible start to the Otway Exploration Program for the joint venture and 3D Energi shareholders. Ora testing has confirmed reservoir deliverability in key Waarre A intervals and delivered the type of high-quality subsurface data needed to progress our technical and commercial evaluation. This is the first time the Ora technology has been deployed in Australia, and its successful application has allowed us to acquire crucial reservoir insights while reducing environmental impact.
3D Energi shares traded as high as 14.7 cents on Monday morning, up 13.1% before settling back to be 7.7% higher at 14 cents.
The company was valued at $68.1 million at the previous trading day's close.
