Australia's 3D Energi confirms gas discovery at Essington Reservoir

Nov 27 (Reuters) - Australia's 3D Energi TDO.AX on Thursday confirmed gas discovery within two of its reservoirs at the Essington exploration permit in the offshore Otway Basin.

Work began on the Essington-1 well in VIC/P79 exploration permit, the Melbourne-based energy explorer said earlier this month.

The Offshore Otway Project includes two offshore exploration permits in the basin, which extends from South Australia to Victoria and Tasmania.

The company holds a 20% participating interest in both the permits, which are operated by ConocoPhillips Australia, a unit of U.S. independent ConocoPhillips COP.N.

The drilling is part of one of the first major offshore natural gas exploration campaigns in eastern Australian waters in nearly seven years, as ageing fields in the Bass Strait, off the state of Victoria, approach depletion.