3D Oil : TDO September 2020 Quarterly Activities Report and Appendix 5B

ASX Release

22 October 2020

3D Oil Limited

3D Oil Limited

Level 18, 41 Exhibition Street

Melbourne VIC 3000

Tel: [phone]

Fax: [phone]

www.3doil.com.au

QUARTERLY ACTIVITIES REPORT

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2020

Highlights for the quarter include:

• VIC/P74 (Gippsland Basin):

1. NOPTA approves Hibiscus Petroleum Berhad (CHPL) to enter into a Joint Venture with TDO

• 1. TDO uncovers significant gas prospectivity in the Lower Latrobe Group
• T/49P (Otway Basin):
• 1. ConocoPhillips Australia SH1 Pty Ltd ("COP") continue planning for 3D seismic program

• 1. Maximum acquisition area will be 2840km2, an increase of 1260km2 from the original Dorrigo survey plan. As per the Farmout Agreement ("FOA"), this comes at no expense to TDO.
• WA/527P (Roebuck Basin): Procurement process for seismic vessel underway

3D Oil Limited (ASX: TDO, "3D Oil" or "the Company") is pleased to provide an update to its activities for the quarter ending 30 September 2020.

Exploration

VIC/P74, Gippsland Basin, offshore Victoria

In October of 2020 the National Offshore Petroleum Titles Administrator (NOPTA) issued approval for Carnarvon Hibiscus Pty Ltd ("CHPL"), an indirect wholly-owned subsidiary of Hibiscus Petroleum Berhad to enter into a Joint Venture with TDO. Under the terms of the Joint Operating Agreement, TDO will remain as operator and retain 50% equity in the permit. VIC/P74 covers 1,009km2 of the southern side of the Gippsland Basin, adjacent to the giant

Page | 1

Kingfish Oil Field, the largest oil field ever discovered in Australia having produced over one billion barrels of oil to date.

In July 2020, the Joint Venture purchased 1004 km2 of the CGG Gippsland ReGeneration Reprocessing over the VIC/P74 permit area (Figures 2 and 3), including full and offset stacks, gathers and velocity model thereby fulfilling a major work commitment of the Primary Term. Preliminary screening of the data has confirmed significant uplift in seismic image quality, (Figure 5).

Figure 2: VIC/P74 permit with purchased CGG 3D seismic reprocessing

Interpretation of this reprocessed dataset has advanced significantly over this quarter, and based on preliminary results, the Company has identified strong potential for gas targets throughout the Lower Latrobe Group. The Golden Beach Subgroup of the Lower Latrobe Group forms an important play in VIC/P74 because of the proven petroleum system associated with the Omeo gas-condensate discovery, as well as the trap potential realised by the previous operator.

Mapping of the Golden Beach Subgroup has revealed a variety of trapping styles within the eastern side of the permit, and the Company is optimistic that identified structures are large enough to hold commercial volumes of hydrocarbons, particularly gas. A variety of other traps have also been identified within the Upper Latrobe Group.

Previous drilling failures in the permit have been attributed to invalid closures due to significant depth conversion error, owing to velocity anomalies within the overburden. Accordingly, 3D Oil

Page | 2

plans to complete its seismic interpretation over the following quarter and undertake detailed depth conversion studies to reduce the uncertainty on the configuration and size of identified structural closures. Once depth conversion has been completed, the Company will undertake a volumetric assessment and release prospective resource estimations to the market.

Despite the early stage of the work programme, the Company has been approached by several parties interested in farm-in options and is currently hosting data rooms.

The Gippsland Basin is extremely important for gas supply to south-east Australia, however, existing gas production from the basin is known to be in rapid decline. 3D Oil believes that the Joint Venture's growing list of gas prospects in the west Gippsland basin will be strategically placed to address an upcoming shortfall in gas supply.

Figure 3: Comparison of the legacy 3D data (top image) with CGG 3D seismic

reprocessing purchased by the Joint Venture

T/49P, Otway Basin, offshore Tasmania

3D Oil holds 20% interest in the T/49P exploration permit, which covers 4,960km2 of the strategic offshore Otway Basin. The permit is located adjacent to the producing Thylacine and Geographe gas fields (100% owned by Beach Energy Limited (ASX: BPT)).

Page | 3

ConocoPhillips Australia SH1 Pty Ltd ("COP") holds 80% interest in the permit and is operating. In accordance with the Farm out Agreement ("FOA"), COP will now undertake the acquisition of a 3D seismic survey of not less than 1580 km2 within the Permit to which TDO will make no financial contribution.

Throughout the quarter COP progressed with planning for acquisition of the Sequoia 3D Marine Seismic Survey (MSS). The survey, formerly known as Dorrigo, will now cover approximately 2840km2, which is an increase of 1260km2. Due to the increase in size of the survey, and transfer of operatorship to COP, additional time is required to prepare a new Environment Plan and secure a seismic vessel. As such, this survey is now planned for the second half of CY 2021.

TDO welcomes the proposed increase of acquisition foot-print. In combination with the Flanagan 3D MSS, acquired by TDO in 2014, the majority of the T/49-P permit will be covered by high quality, modern 3D seismic data. This will allow the Joint Venture to evaluate the full potential of the permit. The primary objective of the survey is to cover remaining leads in the central and southern sections of the T/49P acreage and provide further detail on the Flanagan Prospect. Once processing and interpretation is complete, it is hoped that the Joint venture will be able to generate a permit-wide prospect seriatim that will inform the best possible drilling location.

Upon completion of the 3D seismic program, COP may elect to drill an exploration well which will fulfill the current Year 6 work commitment. In the event COP elects to drill such exploration well, the Company will be carried for up to US$30 million in drilling costs after which it will contribute 20% of drilling costs in line with its interest in the Permit.

Figure 1: Location Map of the Sequoia 3D Marine Seismic Survey (image courtesy of

ConocoPhillips Australia)

Page | 4

Table 1: T/49P Prospective Resource Estimate (TCF) Recoverable Gas

		(ASX ann. 27-Jul-17)
	Location	Status	Low		Best		High
	Flanagan	Prospect		0.53		1.34		2.74
	Munro (T/49P Part)	Lead	0.04	0.19	0.57
	Whistler Point	Lead		0.82		2.04		8.95
	British Admiral	Lead	0.37	1.03	4.45
	Seal Rocks	Lead		0.95		4.64		10.64
	Harbinger	Lead	0.33	0.79	1.43
	T/49P Arithmetic Total			3.04	10.03	28.77

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons

WA-527-P, Bedout Sub-basin, offshore Western Australia

3D Oil holds 100% interest in the WA-527-P exploration permit, which covers 6,500km2 of the offshore Bedout Sub-basin. The permit is located adjacent to oil and gas/condensate discoveries at Roc, Phoenix South and Dorado (Figure 2).

Last quarter the Company received approval from the government regulator NOPSEMA to undertake acquisition of the Sauropod 3D MSS. Throughout this quarter the Company progressed with a vessel procurement process in order to secure a vessel that will be capable of acquiring the survey within the constraints of the approved Environment Plan.

The Sauropod 3D MSS is approved for a maximum full fold acquisition area of 3447km2 and is planned to take place between January and April inclusive of 2021. The survey is primarily aimed at determining the potential for traps associated with a Triassic erosional channel system that is analogous to that which provides the trapping mechanism for the nearby Dorado discovery (Figure 3). The survey is also intended to provide further insight on the size of the Whaleback and Salamander leads and the potential of the Palaeozoic petroleum system in the north-east of the acreage.

Page | 5

Figure 3: Location of Sauropod 3D MSS Environmental Planning Area

Table 2: WA-527-P Prospective Resource Estimate (MMbbls) Recoverable Oil

	Prospect		Stat	Low	Best	High
		us
	Salamander		Lead	57	191	713
	Jaubert		Lead	17	72	205
	Whaleback		Lead	16	87	219
	WA-527-P			90	349	1,138
	Arithmetic Total

(ASX ann. 26-Feb-18)

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

VIC/P57, Gippsland Basin, offshore Victoria

TDO holds 24.9% interest in the VIC/P57 exploration permit in the offshore Gippsland Basin with Joint Venture ("JV") partner and operator, Hibiscus Petroleum. 3D Oil acts as technical adviser to the JV.

The Joint Venture have identified two drilling candidates in the permit including; Felix and Pointer. The Pointer Prospect is an AVO supported gas target, located close to shore and nearby infrastructure. It is well placed to supply resources to the east Australian gas market. The Felix Prospect is a low risk Oil & Gas prospect located between the Wirrah discovery and Moonfish field.

Page | 6

The Joint Venture looks forward to adding to its Gippsland Basin Seriatim with leads and prospects identified within VIC/P74.

Figure 5: Prospects and Leads, VIC/P57

Figure 6: Pointer Prospect Response on Offset Stacks.

Page | 7

Table 3: VIC/P57 Prospective Resources Estimate (MMbbls) Recoverable Oil

		(ASX ann. 27-Jul-17)
Location	Status	Low	Best	High
Felix	Prospect	6.8	15.9	26.9
Salsa	Lead	10.7	15.1	20.6
VIC/P57 Arithmetic Total		17.5	31.0	47.5

Table 4: VIC/P57 Prospective Resource Estimate (BCF) Recoverable Gas

Location	Status	Low	Best	High
Pointer	Prospect	140.1	235.3	364.9
Dexter	Lead	37.0	132.0	259.1
VIC/P57 Arithmetic Total		177.1	367.2	624.0

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Corporate

As at 30 September 2020, the Company held cash and cash equivalents of approximately A$4,021,000.

Payments to related parties and their associates during the quarter as outlined in Section 6 of the accompanying Appendix 5B to this quarterly activities report were A$107k. These payments are related to salaries, superannuation and Director's fees paid to directors and related entities during the September 2020 quarter.

Petroleum Tenement Holdings

As at 30 September 2020, 3D Oil's petroleum tenement holdings were:

	Beneficial interest	Beneficial interest	Beneficial interest at
Tenement and Location	at 30 June 2020	acquired / (disposed)	30 September 2020
VIC/P57	24.9%	nil	24.9%
Offshore Gippsland Basin, VIC
T/49P	20%	nil	20%
Offshore Otway Basin, TAS
WA-527-P	100%	nil	100%
Offshore Roebuck Basin, WA
VIC/P74	100% 1	nil	100% 1
Offshore Gippsland Basin, VIC

1 On 4 October 2019, 3D Oil announced that Hibiscus Petroleum Berhad had elected to enter into a Joint Venture with 3D Oil in the newly awarded offshore Gippsland Basin permit VIC/P74. TDO will remain as operator with 50% equity when a JOA is signed by both parties and required government approvals. On 9 October 2020, 3D Oil announced that the National Offshore Petroleum Titles Administrator (NOPTA) approved Hibiscus Petroleum Berhad to enter into a Joint Venture with TDO in the offshore Gippsland Basin exploration permit VIC/P74. Under the terms of the Assignment Agreement, TDO will remain as operator with 50% equity.

Page | 8

This announcement is authorised for release by the Board of Directors of 3D Oil Limited.

For further information, please contact:

Noel Newell

Executive Chairman

3D Oil Limited

Phone: [phone]

Qualified Petroleum Reserves and Resources Evaluator Statement

The Prospective Resources estimates in this release are based on, and fairly represent, information and supporting documents prepared by, or under the supervision of Dr David Briguglio, who is employed full-time by 3D Oil Limited as Exploration Manager. He holds a BSc.Hons and PhD in Petroleum Geoscience and has been practicing as a Petroleum Geoscientist for 10 years. Dr Briguglio is qualified in accordance with ASX listing rule 5.41 and has consented in writing to the inclusion of the information in the form and context in which it appears.

Prospective Resources

The estimates have been prepared by the company in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2011 approved by the Society of Petroleum Engineer. Prospective Resource estimates are for recoverable volumes and unless otherwise stated this report quotes Best Estimates and gross volumes. The estimates are un-risked and have not been adjusted for both an associated chance of discovery and a chance of development. The Prospective Resources have been estimated with both probabilistic and deterministic methods.

Page | 9

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity
3D Oil Limited
ABN	Quarter ended ("current quarter")
40 105 597 279	30 September 2020

Consolidated statement of cash flows	Current quarter	Year to date (3
			$A'000	months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)	exploration & evaluation	(17)	(17)
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	(123)	(123)
	(e)	administration and corporate costs	(223)	(223)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	4	4
1.5	Interest and other costs of finance paid	(3)	(3)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	45	45
1.9	Net cash from / (used in) operating	(317)	(317)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	(31)	(31)
	(d)	exploration & evaluation	(703)	(703)
	(e)	investments	-	-
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter	Year to date (3
			$A'000	months)
				$A'000
2.2	Proceeds from the disposal of:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(734)	(734)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities	-	-
	(excluding convertible debt securities)
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity	-	-
	securities or convertible debt securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	(5)	(5)
3.10	Net cash from / (used in) financing	(5)	(5)
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1	Cash and cash equivalents at beginning of	5,077	5,077
	period
4.2	Net cash from / (used in) operating	(317)	(317)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(734)	(734)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(5)	(5)
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

1. Effect of movement in exchange rates on cash held
2. Cash and cash equivalents at end of period

Current quarter	Year to date (3
$A'000	months)
	$A'000
-	-
4,021	4,021

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	4,021	5,077
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	4,021	5,077
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	107
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 5B (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities	Total facility	Amount drawn at
	Note: the term "facility' includes all forms of financing	amount at quarter	quarter end
	arrangements available to the entity.	end	$A'000
	Add notes as necessary for an understanding of the
	$A'000
	sources of finance available to the entity.
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end	-

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(317)
8.2	(Payments for exploration & evaluation classified as investing	(703)
	activities) (item 2.1(d))
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(1,020)
8.4	Cash and cash equivalents at quarter end (item 4.6)	4,021
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	4,021
8.7	Estimated quarters of funding available (item 8.6 divided by	3.94
	item 8.3)

Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.

8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions:

8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

ASX Listing Rules Appendix 5B (17/07/20)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2. This statement gives a true and fair view of the matters disclosed.

Date:

22 October 2020

Authorised by: The Board.

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board".
   If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20)	Page 5
+ See chapter 19 of the ASX Listing Rules for defined terms.