3D Oil : 2017 Annual Report To Shareholders

3D OIL LIMITED ABN 40 105 597 279 ANNUAL REPORT - 30 JUNE 2017 Contents 30 June 2017

Corporate directory 2

Review of operations 3

Directors' report 18

Auditor's independence declaration 29

Statement of profit or loss and other comprehensive income 30

Statement of financial position 31

Statement of changes in equity 32

Statement of cash flows 33

Notes to the financial statements 34

Directors' declaration 58

Independent auditor's report to the members of 3D Oil Limited 59

Shareholder information 62

3D Oil Limited Corporate directory 30 June 2017

Directors

Noel Newell (Executive Chairman) Ian Tchacos (Non-Executive Director)

Leo De Maria (Non-Executive Director)

Company secretary Melanie Leydin

Registered office Level 18, 41 Exhibition Street Melbourne, VIC 3000

Telephone: [phone]

Principal place of business Level 18, 41 Exhibition Street

Melbourne, VIC 3000

Share register Computershare Investor Services Pty Limited 452 Johnston Street

Abbotsford Victoria 3067

Telephone: [phone]

Auditor Grant Thornton Audit Pty Ltd Chartered Accountants

The Rialto, Level 30, 525 Collins Street Melbourne Victoria 3000

Solicitors Baker & McKenzie

Level 19, 181 William Street Melbourne

Victoria 3000

Stock exchange listing 3D Oil Limited shares are listed on the Australian Securities Exchange

(ASX Code: TDO)

Websitewww.3doil.com.au

Review of operations 30 June 2017

T/49P, OTWAY BASIN, OFFSHORE TASMANIA

Exploration permit T/49P was awarded to 3D Oil in May 2013 and the Company now holds a 100% interest. T/49P is located in the offshore Otway Basin of Tasmania, immediately southeast of the largest producing gas field in the Otway Basin.

The Otway Basin extends from Tasmanian waters in the south to Victoria and South Australia in the north where it also extends onshore.

Onshore, after a long history of exploration, gas was discovered in 1959 and commercial production was established in 1987.

The first commercial gas discoveries in the offshore Otway were in Victorian waters in the early 1990s but it was not until 2001 that the Thylacine-1 well made the first commercial gas discovery in the Tasmanian Otway. Thylacine and the nearby Geographe gas field have been producing since 2007 from infrastructure that is located close to the northern boundary of 3D Oil's T/49P permit and the Flanagan Prospect. The offshore Otway also supports two other gas production projects at Casino and Minerva, both in Victorian waters.

The T/49P permit is in Year 3 having met the Year 2 permit commitment with the acquisition and processing of the Flanagan 3D seismic survey which was the major commitment in the primary term of T/49P. During the year National Offshore Petroleum Titles Administrator ('NOPTA') granted a suspension and extension of Year 3 to 21 February 2017 in order to allow finalisation of permit mapping.

The permit contains a number of prospective structures for gas exploration within an area of 4,960 km2 in water depths generally no greater than 100m. The north of the permit is now covered by 974 km2 of modern 3D seismic, while the area to the south remains lightly explored covered by a broad grid of 2D seismic data of varying vintages. Only two early exploration wells have been drilled in the permit (in 1967 and 1970) on historic wide spaced 2D seismic and the region had largely been overlooked by the industry despite the proximity of the Thylacine and Geographe producing gas fields.