Industry News

Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the commencement of stimulation campaign at the Shenandoah S2-2H ST1 (“S2-2H ST1”) and Shenandoah S2-4H (“S2-4H”) wells in the Beetaloo Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s (“Falcon”) joint venture partner, Tamboran (B2) Pty Limited (collectively the “Beetaloo JV partners”).

Key Highlights of the Stimulation Campaign

• Stimulation campaign will be completed across:
  • S2-2H ST1’s horizontal section of 1,654 metres (5,427 feet) and;
  • S2-4H’s horizontal section of 2,977 metres (9,766 feet).
• Liberty Energy (NYSE: LBRT) who mobilised equipment and sand to location before the end of last year will carry out the stimulation campaign on behalf of the Beetaloo JV partners.

Shenandoah South Pilot Project (“Pilot”)

For the next drilling phase of the Pilot, which involves the drilling and stimulation of the remaining four wells, Falcon has elected to reduce its participating interest (“PI”) from 5% to 0%.

Key Highlights of the Reduced Participating Interest

• The election by Falcon to reduce its PI to 0% in the remaining four wells of the Pilot will significantly reduce it’s 2025 capital expenditure.
• Falcon participated in the Shenandoah S-1H well in 2023 at its 22.5% PI which created a Drill Spacing Unit (“DSU”) of 20,480 acres.
• Falcon participated in the S2-2H ST1 and the S2-4H wells in 2024 at its reduced 5% PI which created two DSU’s totalling 46,080 acres.
• The Beetaloo JV partners are planning on creating an enlarged area around the Pilot, known as the First Strategic Development Area (“FSDA”), which would amalgamate the acreage and PIs from the DSUs mentioned above and any further DSUs that may be created as part of the Pilot
• Depending on the ultimate size of the planned FSDA Falcon’s combined participation entitlement in the FSDA post the Pilot could be up to 10%.
• Falcon also retains a 22.5% PI in the remaining 4.52 million acres in the Beetaloo, net 1 million acres to Falcon.

To view the full press release, click here

Source: Falcon Oil & Gas

Highlights

Tamboran Resources Corporation Managing Director and CEO, Joel Riddle, said:

“The MOU between Tamboran and Santos aims to explore commercialization options for the development of DLNG Train 2 utilizing natural gas supplied from the extensive prospective gas resources within the Beetaloo Basin.

“With approximately two million net prospective acres across the Beetaloo Basin, Tamboran holds significant gas resources capable of supplying Northern Territory and Australia’s East Coast gas market for decades. With multiple commercialization pathways via LNG markets at Darwin and Gladstone and the East Coast domestic gas market, Tamboran is well positioned to assess opportunities to accelerate value for our shareholders.

“Tamboran and Santos have been partners in the EP 161 acreage, which hosts the Beetaloo East area, for more than a decade.

“We believe the shale within the deepest Beetaloo East region is on par with some of the high-quality shale qualities we have successfully unlocked in the Shenandoah South area in the Beetaloo West. The Beetaloo East is the location of the Tanumbirini wells, which were drilled and flow tested in 2022 and were the first wells in the Basin to demonstrate Marcellus Basin-style decline curves, albeit with undersized equipment, drilling and stimulation techniques.

“We look forward to advancing discussions with Santos to unlock this significant shale gas resource and contribute to the expansion of DLNG in Darwin. This development has the potential to deliver royalties to the Northern Territory Government while generating jobs and royalties for Native Title Holders in the region.”

Source: Tamboran Resources Announcements

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