3D Oil Limited provided a progress update on its 100%-owned exploration permit WA/527-P, located in the Bedout Sub-basin, approximately 80km north-east of the significant recent Dorado-1 oil discovery (Carnarvon Petroleum 20%, Quadrant Energy 80%). WA/527-P is a large permit covering approximately 6,500 km2 in the Bedout Sub-basin. 3D Oil has identified at least fifteen leads across the permit. Recent migration studies have high graded the prospectivity of leads for oil and are the focus of 3D Oil's ongoing farm-out campaign. A number of major strategic parties have expressed interest in the permit following the Dorado-1 discovery which is further enhanced by the recent studies. Erosional channels: 3D Oil completed test reprocessing of key seismic line JN87-20, after having identified a possible erosional channel system in the western side of the permit. The results support the presence of an erosional channel system, analogous to that which set up the Dorado discovery. After integration of this new data, it appears the proposed erosional channel system runs parallel to the western boundary of WA/527-P. The channel is interpreted to cut into Lower Triassic sands, the same as those bearing hydrocarbons at Dorado and Roc. Acquisition of modern 3D seismic data could help determine whether this channel system provides a trapping mechanism for oil bearing structures like Dorado. 3D Oil may be able to then determine the best possible location for the 3D seismic acquisition, after it completes the current task of reprocessing additional key 2D seismic lines within the western side of the acreage. Possible hydrocarbon leakage indicating migration into permit: 3D Oil has identified possible hydrocarbon leakage in the area in the form of possible Hydrocarbon Related Diagenetic Zones (HRDZs). HRDZs are zones of seismic `pull-up,' which could be explained by the presence of sediments that have been chemically altered by vertically migrating hydrocarbons. Most of these interpreted leakage areas are observed where the Triassic system (which hosts the Dorado, Roc and Phoenix South discoveries) on-lap the Broome High. It is likely that this on-lap edge could allow hydrocarbons to escape from the Triassic system and leak vertically. If correct, there is likely to be abundant hydrocarbons available to the acreage and presumably, the hydrocarbons would contribute to any traps set-up by the recently identified erosional channel system. The combination of a potential of abundance oil migration in the permit combined with erosional channels providing trapping mechanisms for possible oil accumulations significantly enhances the potential of the permit and the farmout interest being generated for the Permit.