Industry News

Central Petroleum's new Mereenie production well, WM29 is now online, over one month ahead of schedule. The well flowed at 7 TJ/d during initial testing over a two hour period. WM29’s production will be limited to 6 TJ/d, which is the sustainable capacity limit of the wellhead skid - a rate that is double the pre-drill expectation of 3 TJ/d.

The flow rate achieved at WM29 takes aggregate Mereenie field production up to the pre-drill target of 30 TJ/d. The second well of the two well program, WM30, is being drilled and currently at a depth of 585m. WM30 is expected to be completed by late February, with commencement of production anticipated in early March.

Gas from WM29 is now being sold into the Northern Territory market which needs additional supply.

To view the full ASX announcement, click here.

Source: Leon Devaney, MD & CEO, Central Petroleum Limited 

Chief Minister Lia Finocchiaro has applauded the outgoing CEO of the Department of Chief Minister and Cabinet, Mr Ken Davies PSM, for his extraordinary near five decades in public service.

After an impressive 47 years, Mr Davies will retire from the public service on 3 February 2025.

“Ken began his career in the Northern Territory as a teacher at Papunya in 1978,” said Mrs Finocchiaro.

“He quickly rose through the ranks, becoming a school principal in Alice Springs and Katherine, and later a regional superintendent in Tennant Creek.

“Over his remarkable career, Ken has held chief executive roles in eight agencies, including the Department of Housing, Local Government and Regional Services, and the Department of Education.

"He has served under every government since self-government in 1978 and has been instrumental in leading major initiatives, such as implementing the remote housing construction program and negotiating the first 10-year Stronger Futures funding agreement with the Commonwealth.”

In recognition of his dedication and service, Mr Davies was awarded the Public Service Medal in 2020.

“In 2023, Ken was appointed as the Territory’s top public servant and recently oversaw the effective transition to a new government,” said Mrs Finocchiaro.

“His leadership over nearly half a century has delivered significant economic and social policy reforms in every agency he served.

“Ken embodies the principles of impartial, frank, and fearless public service. He has always upheld the highest professional standards, demonstrating strategic vision, integrity, and a commitment to making the right decisions, even when they are the hard ones.”

Mrs Finocchiaro expressed her gratitude for his leadership during the government transition.

“I thank Ken for his hard work from day one as we charted a new course for the Territory,” she said.

“After nearly half a century of service, I hope he can now focus on catching that elusive Million Dollar Barra. I wish Ken, Bernie, and their family all the very best for the future.”

The Chief Minister also announced that Mr Luccio Cercarelli PSM will lead the public service as the CEO of the Department of Chief Minister and Cabinet upon Mr Davies' retirement on 3 February 2025.

“Luccio has had a distinguished career in public service, and I look forward to working with him to deliver our government’s plan to reduce crime, rebuild the economy, and restore our Territory lifestyle,” said Mrs Finocchiaro.

Mr Cercarelli is currently the CEO of the Department of Housing, Local Government, and Community Development.

Prior to this, he served as CEO of the City of Palmerston for nearly seven years. He was awarded the Public Service Medal in 2024 for his outstanding contributions to local government.

Source: Northern Territory Government Newsroom

The Operator of the Mereenie Joint Venture, Central Petroleum Ltd (ASX:CTP) (“Central”) has advised that the West Mereenie-29 development well has been successfully drilled and completed over the target Pacoota 3 interval. The well has been suspended pending tie-in to the Mereenie Production Station, scheduled for late January.

West Mereenie-30, the second of the two development wells was spudded on 16 January 2025.

These wells are part of the Joint Venture’s ongoing appraisal/development of the Mereenie field and are expected to return field production capacity back above 30TJ/d (Gross). The wells target a material portion of Echelon’s net 8PJ Mereenie 2P Undeveloped gas Reserves*, and we expect to bring them online in Q1 2025.

“It is good to have the first well successfully drilled, buttoned up and ready for tie-in, and the second on its way.” Echelon CEO, Andrew Jefferies says “Initial results suggest the underbalanced drilling technique the Joint Venture has been working up over the last year is paying off. All this additional gas will be swiftly tied back to existing plant and mainlined to the Northern Territory gas market, where we have a long-term contract with the Government, as well as across to the gas short East Coast. Mereenie has been a long term, reliable provider of gas to the Territory, cooking those Australia Day Pavlovas. These wells are part of the work that will see this reliable energy supply continue for decades.“

Participants in Permit OL4/OL5 are Central Petroleum Mereenie Pty Ltd as trustee of the Central Petroleum Mereenie Unit Trust (25%), Echelon Mereenie Pty Ltd (42.5%), Cue Mereenie Pty Ltd (7.5%) and Horizon Australia Energy Pty Ltd (25%). 

Source: Central Petroleum ASX Announcements

Echelon (ASX:ECH) has executed a binding Terms Sheet with London Stock Exchange listed energy company, Mosman Oil & Gas, to purchase the 100% interest in the Northern Territory onshore Exploration Permit EP145, in the Amadeus Basin and highlights:

• Purchase price of AUD400,000 cash payment
• 5 per cent royalty on Helium and Hydrogen
• Agreement subject to conditions, including FIRB and regulatory approval

To view the full ASX announcement, click here.

Source: Echelon Resources 

As is required by regulation 33 of the Petroleum (Environment) Regulations 2016, Imperial Oil and Gas Pty Ltd has provided notice to the environmental regulator of a reportable incident in the Beetaloo Sub-Basin.

Imperial’s notice has been published today on the department’s website in accordance with regulation 35A.

The incident reportedly involved the release of fluid - about 2,000 litres - from a well site which caused a visible impact to offsite vegetation.

Authorised inspectors for the environmental regulator are travelling to the site to determine the cause and impact.

This reportable incident shows the Territory's strict regulations around onshore gas development are working.

Hon Bill Yan - Treasurer

Course: Northern Territory Government Newsroom

Territory businesses and industry representatives are invited to attend a CLP Government-led supply chain business delegation to the Energy Exchange Australia 2025 (EXA).

EXA, previously known as Australian Oil and Gas (AOG) Energy, is Australia's leading oil, gas, energy and service supply event and will be held in Perth from 11-13 March.

The event celebrates innovation in all aspects of energy from oil and gas to renewables and clean energy solutions with over 6,900 people attending last year’s event.

Minister for Trade, Business and Asian Relations, Robyn Cahill, said the oil, gas and energy sector was a significant contributor to the Territory’s economy.

“We are focused on driving investment and trade opportunities in this important sector through events such as EXA," said Ms Cahill.

“This is an important industry platform for Territory businesses to connect, collaborate and engage in meaningful conversations with key national and international gas operators and contractors.

“Increasing the level of Territory businesses involvement in energy supply chains will deliver long-term sustainable business and jobs and growth.

“The CLP Government recognises the importance of supporting private investment to rebuild the NT economy. We are committed to ensuring the resources sector thrives, creating jobs and generating substantial revenue to fuel the Territory’s prosperity.

“By playing to our natural strengths, we are placing these industries at the forefront of rebuilding the Territory economy.”

The NT delegation will participate in the Northern Territory Government exhibition stand, attend industry briefings and networking events.

There will be opportunities for Territory businesses to showcase their products and services to the domestic and international energy supply chain.

Businesses can submit an expression of interest at https://forms.office.com/r/e3KWn8Npif

EOI’s close on Friday, 31 January 2025.

For more information contact Industry.Strategy@nt.gov.au 

Source: Northern Territory Government Newsroom

The Utilities Commission has published the 2023-24 Northern Territory Power System Performance Review.

The review provides an assessment of overall power system, network and generation performance in the Darwin-Katherine, Alice Springs and Tennant Creek power systems.

To view the full article and the report on the Utilities Commission Newspage, click here. 

Source: The Utilities Commission of the Northern Territory

More than three years after lodging a drilling application, geothermal energy start-up Good Water Energy has received NT Government approval to develop its first Australian geothermal project.

Years after lodging the initial application, Good Water Energy announced on New Year’s Day the NT Government had approved drilling at the company’s Middle Arm tenement.

Good Water Energy chairman and founder Warren Strange said the company’s “pioneering” geothermal technology promised to transform Australia’s renewable energy landscape.

He said drilling at Middle Arm was planned for May 2025 with production planned for 2026 if low-cost green hydrogen was sourced.

But Mr Strange also applied a significant project caveat, insisting Good Water Energy paid a $10m capped royalty payment to the NT Government.

“To mitigate the risk of a future unreasonable royalty being applied, GWE is offering to pay the NT government a reasonable, but generous thermal energy production royalty, fixed for the life of their projects in Darwin,” Mr Strange said.

“This royalty could provide more than $10m per year to the NT Government if large scale green hydrogen and sustainable aviation fuel production is approved by the government and GWE expands to meet the Australasian market demand.”

Mr Strange looked at opportunities in the United States as he sweated on approvals for his Territory venture.

“It has been a long, difficult and frustrating process to finally receive drilling approval in Darwin,” Mr Strange said.

“During this process, GWE has established a geothermal project in Texas and is well advanced with plans to produce low-cost green hydrogen for the US aviation, transport and remote electricity generation markets.

“Geothermal energy rights belong to landowners in Texas, so we have skipped the four year and $3m tenement and drilling application process required in Australia and other territories where the states own the geothermal rights and generally block geothermal energy development in support of the fossil fuel industry.”

The project will include a 6000m deep exploration well to access hot granite rock, the injection of desalinated sea water and generation of baseload electricity.

He said the green electricity, distilled water and excess thermal energy would be used to produce low-cost green hydrogen.

The company wants to produce up to one million tonnes of competitively-priced green hydrogen from Middle Arm and if successful, replicate the technology elsewhere in Australia.

“We’re excited to showcase to the world our strategy to produce very competitively priced green hydrogen and to show it is no longer just a vision but a fast-approaching reality,” he said.

The NT Government said royalty regimes applied to production activity and waved away Mr Strange’s $10m cap.

“Additional detail and further discussion would be required before the Minister and the NT Government could determine an appropriate royalty structure for geothermal energy, whether with Good Water Energy or any future geothermal energy proponent, in accordance with the Geothermal Energy Act 2009 (NT),” a spokesman said.

Source: NT News

Small businesses across the Territory are set to save tens of thousands of dollars with the CLP Government’s reforms to payroll tax now in effect.

From 1 January 2025, the payroll tax-free threshold has lifted to $2.5 million with Apprentice and Trainee wages also now exempt.

Specifically, amendments to the Payroll Tax Act 2009 now in effect includes:

Increasing the tax-free threshold from $1.5 million to $2.5 million. Increasing the maximum annual deduction from $1.5 million to $2.5 million per annum, ensuring businesses with wages just above the tax-free threshold continue to pay an effective tax rate that steadily rises from 0% to 5.5% as the payroll of the business grows. Changing the rate above the tax-free threshold to $1 for every $2 in wages over the previous $1 for every $4, ensuring the annual deduction is reduced for businesses paying wages of $7.5 million and above. Introducing a new payroll tax exemption for wages paid or payable to apprentices and trainees.

Treasurer Bill Yan MLA said the reforms aimed to reduce tax for small business while supporting the employment and upskilling of local Territory workers.

“Our payroll tax reforms – the best in the country – will save local businesses an average of $22,000 annually and will abolish payroll tax altogether for 200 small businesses, meaning more money can be invested in apprentices and trainees,” he said.

“Territorians gave us mandate to reduce crime, rebuild the economy and restore our iconic Territory lifestyle.

“Key to rebuilding the economy, these payroll tax reforms are the first in 13 years and are set to position Territory businesses as the best place to thrive and help grow the economy.

"The money saved by small business through these changes can be reinvested into their business to better support additional employment and training outcomes for Territorians.

“These changes now make the Territory the best place to do business with the most generous tax-free threshold and annual deduction in the country.

"It sends a clear signal this Government is committed to supporting local business and attracting new employers to invest in the Territory.”

Businesses with wage bills between $2.5 million to $7.5 million will see their tax bill decrease from 1 July 2025.

To explore your eligibility or to learn more, visit treasury.nt.gov.au https://treasury.nt.gov.au/dtf/territory-revenue-office/payroll-tax

Source: Northern Territory Government Newsroom

Key points 

• Good Water Energy has received drilling approval from the Northern Territory Government for its Middle Arm Geothermal Exploration Project, its first Australian geothermal project. 

• The company’s patented technology is projected to harness a fraction of the Earth’s geothermal heat resources through a closed-loop well system. 

• The technology aims to produce Australia’s most cost-effective 100% baseload, green electricity, desalinated water and hydrogen. 

Good Water Energy (GWE), an Australian geothermal energy innovator, is proud to announce that it has received approval from the Northern Territory Government for its first Australian geothermal project. 

The groundbreaking initiative includes the drilling of an exploration well below 6,000 metres deep to access hot granite rock, the injection of desalinated sea water and generation of baseload electricity. The green electricity, distilled water and excess thermal energy will then be used to produce very low-cost green hydrogen. 

The project, located at Middle Arm, is based on a closed-loop system — a process that avoids fracking, groundwater extraction and once operational, essentially all greenhouse gas emissions. 

Using patented and other proprietary drilling technology successfully demonstrated in Finland and Australia, GWE is targeting production of green hydrogen at a highly competitive price per kilogram. 

The company aspires to up-scale its operations, with an annual target of up to 1 million tonnes of green hydrogen from coastal property close to Darwin. Once operational, this innovation could be replicated in other areas, transforming the Australian renewable energy market and making a substantial contribution to the country’s renewable energy transition. 

Good Water Energy Chairman and founder Mr. Warren Strange explained the pioneering geothermal technology promises to transform Australia’s renewable energy landscape and achieve net-zero goals. 

“This approval represents a major milestone in the renewable energy sector,” explained Mr. Strange. 

“The journey towards a sustainable and renewable baseload energy source for communities, industries, and agriculture has just become significantly easier. 

“Our innovative and proven drilling technology enables commercially viable access to high-temperature thermal heat from deep geothermal wells at any location. 

“By utilising the waste thermal energy after electricity generation, we are aiming to make green hydrogen production more efficient than ever before. 

“This technology’s purpose is to provide an affordable, reliable alternative to fossil-derived energy while avoiding the high costs, timeframes and technical challenges associated with nuclear energy.” 

With government approval, GWE can now advance its Middle Arm Geothermal Project with the object of demonstrating the viability of its technology and paving the way for larger-scale operations, including plans for a major green hydrogen production project in the Darwin region. 

“We’re excited to showcase to the world our strategy to produce very competitively priced green hydrogen and to show it is no longer just a vision but a fast-approaching reality,” said Mr. Strange. 

This project aligns with Australia’s commitment to achieving net-zero emissions by 2050. By harnessing Earth’s geothermal heat, GWE is positioning the Northern Territory as a global leader in clean energy technology. 

To view the full announcement, click here. 

Source: Good Water Energy