March 18 (Reuters) - Australia's 3D Energi ( TOILF ) said

on Wednesday it received a buyout notice from the Australian

unit of ConocoPhillips ( COP ) to acquire its participating

interest in the VIC/P79 exploration permit, offshore Otway

Basin, for fair market value.

The notice follows earlier default notices issued under the

joint operating agreement related to the Otway Phase 1 drilling

program, in which 3D Energi ( TOILF ) holds a 20% stake.

ConocoPhillips Australia, the permit operator, holds a 51%

stake, while Korea National Oil Corporation holds 29%.

Under the agreement, the parties will seek to agree on a

fair market value for the stake, failing which an expert

valuation will be obtained.

Once the value is determined, ConocoPhillips' ( COP ) Australian

unit may exercise its buy-out right within 30 days, 3D Energy

said.

If the buy-out option is not exercised within that period,

ConocoPhillips Australia and Korea National Oil Corporation may

pursue other remedies available under the agreement, including a

potential dilution of 3D Energi's ( TOILF ) participating interest, it

said.

3D Energi ( TOILF ) added that it is continuing to obtain advice on

the validity of the default and buy-out notices.