Key Highlights

  • Four existing 3D seismic surveys covering more than 4,000 square kilometres over offshore permits SC-80 and SC-81 are to be reprocessed using current techniques
  • Processing contract valued at US$1.45 million, approximately A$850,000 net to Tetragon, has been awarded to DUG Technology Ltd
  • Initial fast-track seismic products are expected within six months, with the final processed dataset expected within 12 months
  • The reprocessed data is intended to better define prospectivity across the permits and support discussions with potential farm-in partners

Tetragon Energy Limited (ASX:TET) has announced the award of a seismic data reprocessing contract covering its offshore oil and gas permits in the Philippines, describing the move as the first key step in its strategy to unlock the value of the acreage. The announcement, dated 13 July 2026, confirms that DUG Technology Ltd has been engaged to reprocess four existing 3D seismic surveys spanning permits SC-80 and SC-81.

Scope of the Seismic Reprocessing Contract

Tetragon is the operator of the offshore SC-80 and SC-81 permits, which also include partners Sunda Energy Limited, Philodrill and PXP Energy. The contract awarded to DUG Technology covers the reprocessing of four 3D seismic surveys, together with additional 2D survey data, across the permit areas. In total, the surveys to be reprocessed cover more than 4,000 square kilometres.

DUG Technology, an Australian seismic processing company based in Perth, will apply current processing and imaging techniques together with its global supercomputing network to the datasets. The contract carries a value of US$1.45 million, of which approximately A$850,000 is net to Tetragon through the joint venture structure covering the permits.

Origin and Value of the Underlying Data

The four 3D surveys being reprocessed were originally acquired between 2005 and 2013 and were obtained by Tetragon at no cost. The company estimates that the surveys would have cost more than US$20 million to acquire at the time. Ahead of the reprocessing contract, the joint venture spent several months locating and exporting the original data tapes to Perth, where the material was copied from the original tapes onto modern digital media.

The joint venture will spend US$1.45 million over the coming year on the reprocessing work, which the company expects will materially increase data quality and confidence in the prospects located within the two permits relative to the original vintage processing.

Expected Timeline and Deliverables

According to the announcement, initial fast-track seismic products from the reprocessing program are expected to be delivered within six months, with the final processed dataset expected to be available within 12 months. The company said the reprocessed data will be used to better define the prospectivity of the SC-80 and SC-81 permits and to pave the way for discussions with potential farm-in partners.

Management Commentary

Tetragon Managing Director Conrad Todd described the award of the contract as a pivotal step in the company's strategy to create value from the Philippines permits, saying the results of the reprocessing will underpin discussions with potential farm-in partners. Todd said that by outlining prospects and existing discoveries within the permits, the company will be able to demonstrate the upside in the acreage to major oil and gas companies.

DUG Technology Managing Director Matt Lamont said the company has a long-standing working relationship with members of the Tetragon board and senior management, and said DUG is looking forward to supporting the successful delivery of the project.

Significance of Seismic Reprocessing for Exploration Permits

Seismic reprocessing is a standard technical step used by explorers holding legacy 3D and 2D datasets, allowing operators to apply processing algorithms and computing capability that were not available at the time the original surveys were acquired. For permits such as SC-80 and SC-81, where the underlying seismic data was collected between 2005 and 2013, reprocessing can improve the clarity of subsurface imaging without the cost or lead time associated with acquiring new seismic over the permit areas.

The company's decision to prioritise reprocessing ahead of any new seismic acquisition or drilling reflects a common sequencing approach in frontier and underexplored basins, where operators seek to maximise the value of existing datasets before committing further capital. Improved imaging from the reprocessed data is intended to support more precise identification of prospects and leads across the permit areas, which in turn is expected to inform the scope and location of any future exploration activity.

Positioning for Farm-In Discussions

Tetragon has framed the reprocessing program explicitly as a precursor to discussions with potential farm-in partners, rather than as a precursor to company-funded drilling. This approach is consistent with a strategy of using improved technical data to attract external capital and technical expertise from larger oil and gas companies, which the company has said it intends to approach once the reprocessing outcomes are available.

The permits are held under a joint venture structure that includes Sunda Energy Limited, Philodrill and PXP Energy alongside Tetragon as operator, meaning that any future farm-in or funding arrangement would need to be considered in the context of the existing partner interests and joint venture governance arrangements applicable to SC-80 and SC-81. As operator, Tetragon has led the process of locating, exporting and reprocessing the historical datasets, positioning the company to coordinate subsequent technical and commercial discussions with prospective partners on behalf of the joint venture.

Conclusion

The award of the seismic reprocessing contract represents an initial step in Tetragon Energy's stated strategy to progress its Philippines permits toward a farm-in transaction. With fast-track products expected within six months and a final dataset within a year, the company's near-term milestones are centred on the technical outcomes of this reprocessing work, which management has framed as the basis for subsequent discussions with prospective partners regarding the SC-80 and SC-81 permits.