The 2006 U.S. Open Championship winner made six birdies and a single bogey over the Creek Course at 13th Beach Golf Club to move to ten under alongside Cañizares - with the Spaniard signing for a 71 on the tougher Beach Course.
There was then a six way tie for second including Qualifying School winning Dane Benjamin Poke, three time European Tour winner Marcus Fraser and four more Australians in Stephen Allan, Ashley Hall, Andrew Martin and Zach Murray.
Ogilvy's last European Tour top ten came eight years ago but the 42-year-old showed some of the form that made him a Major and three time World Golf Championships winner on day two.
Starting on the tenth, he birdied the 13th and 16th and, while he dropped a shot on the next, he came home in 32 with gains on the second, fourth, seventh and ninth.
Cañizares started the day with a two shot lead and became the first men's player this week into double figures with a birdie at the fifth. He also picked up shots on the 12th and 15th but bogeyed the ninth and 13th.
Felton made a birdie birdie start and then got to four under through three holes as his tee shot from 145 yards with a nine iron found the bottom of the cup on the par three 12th.
He finished the back nine with a bogey and a double but bounced back with birdies on the second, fifth and ninth.
Flanagan made six birdies and a bogey in his round.
Poke was bogey free on the Beach Course, eagling the par four 15th to go with birdies on the sixth, 13th and 16th.
Fraser carded a 65 over the Creek Course while Murray - who finished second on last season's PGA Tour of Australasia Order of Merit - signed for a 69.
In the women's event, South Korea's Ayean Cho and Swede Linnea Strom set the target at ten under.