Shares in junior oil and gas explorer 3D Energi Ltd (ASX: TDO) were trading higher on Wednesday after the company reported more positive drilling results from its campaign off the coast of Victoria.
The company said in a statement to the ASX on Wednesday morning that its Charlemont-1 well had found "probable gas presence" across three zones – Waarre A, B, and C.
Drilling of Charlemont-1 started on December 10 and had to be temporarily halted at one stage due to "higher than expected formation pressures with significant gas shows''.
The company said further:
Drilling into the Waarre C reservoir re-commenced on the evening of 2 January 2026. Elevated gas readings were recorded across the Waarre C sandstones and coincide with elevated resistivity readings on wireline, consistent with probable hydrocarbon presence in the Waarre C sandstones. Further wireline logging is required to fully evaluate the nature and extent of the hydrocarbons.
Image source: Getty Images
Positive results to date for ASX energy stock
Executive Chair Noel Newell said the results were very encouraging.
We are incredibly excited by early indications consistent with gas presence in multiple Waarre reservoirs. Wireline logging will be critical in assessing the quality and extent of these indications, and the Company remains optimistic as it continues to plan to progress to the evaluation phase. The identification of probable hydrocarbons in the Waarre C is significant, as hydrocarbons were not anticipated in this zone prior to drilling. This outcome may have further positive implications for up-dip prospects along the Charlemont Trend, particularly those not currently supported by existing Direct Hydrocarbon Indicators on seismic. We will be evaluating this closely at the conclusion of the drilling program.
Mr Newell said there were further prospects which could be tested in the region, and "if successfully appraised, this cluster could be among the largest gas pools in the Otway Basin".
3D Energi holds a 20% stake in the exploration program, while ConocoPhillips serves as the operator with a 51% stake, and Korea National Oil Company owns the remaining 29%.
3D Energi was valued at $81.2 million at the close of trade on Tuesday.
Strong run of results for ASX energy stock
The company has almost doubled in value since its first announcement in November that the Essington-1 well had intersected two gas bearing reservoirs, with one having 58.5 metres of net gas pay while the second had 31.5 metres.
With gas supplies on Australia's east coast tight, any new discoveries in the region will be welcomed by industry and government.
The Australian Energy Market Operator, in its 2025 Gas Statement of Opportunities, forecasted earlier this year that there would be a risk of gas shortfalls in the coming years, despite declining gas use.
3G Energi shares were 3.2% higher on Wednesday at 16 cents.
