Industry News

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

Highlights:

• C-5H well has been successfully drilled and cased to a Total Depth of 5,310 metres (17,421 feet) 
• 100% of the 3,310 metre (10,860 foot) horizontal section was placed within the target Velkerri-B shale, with strong gas shows throughout 
• The C-5H well was completed with 5 ½” casing to Total Depth prior to suspension and rig release on 27 December 2024 
• The well was executed in 41 days from spud to rig release 
• Fracture stimulation operations and production testing of C-5H scheduled to commence in early Q2 2025 after the NT wet season 
• Empire has executed facility documentation with Macquarie Bank for the R&D Facility ($30 million) and Performance Bond Facility ($5 million) 
• Current cash at bank is $25.7 million with an additional $28.8 million available and undrawn under the Macquarie facility

Comments from Managing Director Alex Underwood:

"The safe and successful drilling, casing and cementing of C-5H represents a major operational milestone for Empire Energy and the broader Beetaloo Basin.

C-5H contains the longest horizontal drilled and cased section of any well drilled in the basin to date. The horizontal section was completed fully within the target Middle Velkerri-B shale zone, setting the Company for a successful stimulation program.

The decision we have made to delay the C-5H fracture stimulation from January 2025 to April 2025 has been taken with the best interest of our shareholders in mind, as the financial risk of weather-related issues would have been substantial. The Change in program timing is not expected to delay delivery of first gas in 2025.

The documentation of the Macquarie R&D and Performance Bond Facilities enhances the Company's liquidity without any dilution of shareholders' interests. We look forward to completing documentation of the Midstream Infrastructure Facility in Q1 2025."

Source: Empire Energy Group 

Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce that the Shenandoah S2-4H (“SS4H”) horizontal well was successfully drilled, cased and cemented to a measured depth of 6,452 metres (21,169 feet) in exploration permit 98 in the Beetaloo Sub-basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s (“Falcon Australia”) joint venture partner, Tamboran (B2) Pty Limited (“Tamboran B2”).

Data from the SS4H well has indicated strong gas shows and a continuation of the high-quality shale and rock properties observed in the Shenandoah South 1H and Shenandoah South 2H (“SS2H ST1”) locations with no faulting observed along the entire 3,048-metre (10,000 foot) lateral section.

The Liberty Energy (NYSE: LBRT) stimulation equipment and sand has been mobilized to location ahead of the stimulation campaign, which is planned to commence in early 1Q 2025, with IP30 flow test from both SS2H ST1 and SS4H expected to be released in 1Q 2025.

 Philip O’Quigley, CEO of Falcon commented:

“The completion of the SS4H well is another milestone in the development of the Beetaloo Sub-basin and we will look forward to the upcoming stimulation campaign and updating the market as operations progress.”

To view the full ASX announcement, click here.

Source: Falcon Oil & Gas Ltd.

Highlights:

• The Shenandoah South 3H (SS-3H) well was successfully drilled, cased and cemented with 5-½- inch casing to a measured depth of 21,169 feet (6,452 metres) within Beetaloo Basin exploration permit EP 98. 
• The well was drilled in 25 days (spud to total depth (TD)) and achieved an average drilling rate of 843 feet per day, 10 days and 43% faster than the SS-2H well, the only well previously drilled to total depth of more than 20,000 feet. This follows the successful implementation of key lessons from wells drilled earlier in the 2024 campaign. 
• The SS-3H well is the first well drilled and cased with a useable 10,000-foot (3,048-metre) horizontal section below 8,000 feet true vertical depth (TVD) for stimulation in the Beetaloo Basin. 
• Data from the SS-3H well has demonstrated strong gas shows and a continuation of the highquality shale and rock properties observed in the Shenandoah region, including a gentle, undulating structure with no faulting observed along the ~10,000-foot (3,048-metre) section. 
• The Liberty Energy (NYSE: LBRT) stimulation equipment and sand has been mobilized to location ahead of a 100 – 120-stage stimulation campaign, which is planned to commence in early 1Q 2025. 
• The SS-2H ST1 well is planned to be stimulated with up to 45 stages following the casing of the horizontal section to 5,577 feet (1,700 metres). The SS-3H completion design is expected to increase up to 75 stimulated stages over the 10,000-foot section. 
• IP30 flow tests from both wells remain on track for release in 1Q 2025.

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

“We are proud to have achieved the first drilled, cased and cemented 10,000-foot horizontal section below 8,000 feet TVD within the Mid Velkerri B Shale of the Beetaloo Basin to date. Importantly, we encountered strong gas shows and no observed faulting across the entire horizontal section, which continues to exhibit high-quality shale properties in line with the SS-1H drilling location three miles away.

“Drilling took a total of 25 days to reach TD, at an average drilling speed of 843 feet per day, which is 43% quicker than the drilling of the original SS-2H well, the only other well drilled to a similar total depth in the Beetaloo Basin to date.

“The operations team deserve full credit for delivering this historic result, which now gives us the opportunity to demonstrate flow testing over a full 10,000-foot horizontal section prior to finalizing the 2025 drilling program. Next years’ program will focus on the remaining development wells required for the proposed Shenandoah South Pilot Project, which is expected to deliver much needed gas supply into the Northern Territory gas market.” 

Source: Tamboran Resources

The CLP Government has welcomed the Independent Expert Scientific Committee’s (IESC) latest advice, which assesses the potential water resource impacts of Beetaloo Sub-basin’s petroleum exploration and appraisal activities as ‘minor’.

The IESC on Unconventional Gas Development and Large Coal Mining Development delivered its advice to Federal Minister for Environment and Water Tanya Plibersek earlier this week.

Minister for Mining and Energy Gerard Maley said the CLP Government is unequivocally backing the onshore gas industry, and this latest advice provides additional certainty and confidence around environmental concerns to investors, industry and the broader community.

He said the IESC advice validates the NT’s robust regulatory framework, which Government has put in place to prepare for the responsible development of gas production from the world-class Beetaloo Sub-basin resource.

“We already have stringent measures in place to safeguard the Territory’s natural environment in preparation for the Beetaloo coming online, including strict water management laws underpinned by world-leading environmental studies and regulatory best practice.

“And now the IESC advice reflects this by assessing the potential impacts on water resources by exploration and appraisal activities in the Beetaloo Sub-basin as ‘minor’.”

“This provides additional reassurance to Territorians, and importantly gives industry added certainty it requires to invest in exploring and developing the Beetaloo.”

The IESC is made up of leading scientists that independently advises government regulators on the impacts that unconventional gas and large coal mining developments may potentially have on Australia’s water resources.

Its latest advice identifies that hydraulic fracturing of deep shales for exploration and appraisal is not considered to be a major risk to the Basin’s groundwater systems if conducted according to industry best practice.

“The Beetaloo Sub-basin has some of the largest gas reserves in the world, and it is of the highest priority for our Government, and myself as Minister for Mining and Energy to develop this resource for the benefit of Territorians, with the appropriate regulatory mechanisms in place.”

“Developing the Beetaloo will deliver much-needed energy security for the Territory and the nation, rebuild the Territory’s economy, and create thousands of ongoing jobs for Territorians,” said Minister Maley.

Source: Northern Territory Government Newsroom

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The Northern Territory Government is helping our small businesses grow by cutting payroll tax.

If your business pays less than $2.5 million in wages each year, you may be eligible for the Northern Territory Government’s Payroll tax waiver.

To register, you need to notify the Territory Revenue office between 1 January and 30 June 2025.

On average, the move will save around 200 Territory business $22,000 each year.

If an employer is part of a group, payroll liabilities will be waived where the 2024-25 taxable Australian wages of the group are $2.5 million or less, and only the Designated Group Employer will be able to claim the waiver in the Group Annual Return.

Employers who are eligible for the waiver still need to pay payroll tax liabilities incurred between 1 July 2024 to 31 December 2024.

The payroll tax waiver will be supported by amendments to the Payroll Tax Act 2009, which will come into effect from 1 July 2025 and include: 

• Increase the tax-free threshold to $2.5 million.
• Increase the maximum annual deduction to $2.5 million
• Exempt wages paid to apprentices and trainees.

Find out more at https://treasury.nt.gov.au/dtf/territory-revenue-office/payroll-tax.

To contact the Territory Revenue Office, please email ntrevenue@nt.gov.au or by calling on 1300 305 353 

Source: Department of Trade, Business and Asian Relations

The CLP Government has outlined a number of environmental measures that will protect our pristine environment, streamline decision making and allow economic development in the Territory.

Minister for Lands, Planning and Environment and Water Resources Joshua Burgoyne said that we have world class environmental protections, and these measures will provide a strong foundation for economic growth and certainty for business investment.

“We are providing certainty to the environment and users of water through the declaration of water allocation plans in the Mataranka and Western Davenport regions.

“Both of these plans have been developed using the best available science and a comprehensive understanding of the water resource.”

The Mataranka Water Allocation Plan 2024-2034 is the first water allocation plan for the area, which covers over 9,000km² and comprises three water management zones: North Mataranka, South Mataranka and Larrimah.

“The aquifer holds an estimated 32 million megalitres (ML) of water, with the estimated sustainable yield (ESY) for this allocation plan set at a maximum of 62,474 ML per year," said Mr Burgoyne.

“Together, the ESY and the management rules preserve more than 90% of the dry season flows to the river.

“The plan protects the environmental value of the Roper River and iconic springs, providing water security to communities, and supporting economic development, including in the Larrimah agricultural precinct."

Similarly, the Western Davenport Water Allocation Plan maintains the vast majority of water in the aquifer, with the ESY using only 0.6% of the groundwater storage throughout the 10-year life of the plan, or 0.06% per year.

“This means that 99.4% of the groundwater remains in the ground over the 10-year life of the plan,” said Mr Burgoyne.

Decisions to eliminate duplication to build a more efficient approvals system were also outlined as part of the environmental measures.

Acting on advice from the NT Environment Protection Authority (NT EPA) Chair, Dr Paul Vogel, the requirement to refer all Environment Management Plans for petroleum activities to the NT EPA has been removed.

“This does not remove the NT EPA’s ability to call in any project application for formal assessment, nor does it remove my right to request the NT EPA’s advice for specific proposals,” Mr Burgoyne said.

Chair of the NT EPA, Dr Paul Vogel, said that he is confident the environmental regulator and regulatory framework for onshore petroleum in the NT is sufficiently robust to ensure the sustainable development of that industry.  

Mr Burgoyne stated that the Government has also removed duplication in gas emissions policies in the NT.

“The Territory established the large emitters and gas emissions policies when there were no other policies to regulate greenhouse gas emissions.

“The Federal Government then introduced a nationally consistent approach to reducing emissions, so now we have tidied up and strengthened our processes.

“These matters are regulated through the Environment Protection Act and the Petroleum Environment Regulations.”

The Australian Government’s Safeguard Mechanism ensures a nationally consistent approach on how this important issue is regulated nationwide.

Source: NT Government Newsroom

Media release issued by:

Joshua Burgoyne

Minister for Water Resources

Minister for Lands, Planning and Environment

APA Group (ASX:APA) today announces the execution of a Development Agreement, long-term Gas Transportation Agreement (GTA) and Connection Agreement with Tamboran Resources Corporation (ASX: TBN, NYSE: TBN) and Daly Waters Energy, LP for the Sturt Plateau Pipeline (SPP) connection in the Northern Territory.

Under the agreements, APA will build, own and operate the SPP to connect the Tamboran Resources’ operated Shenandoah South Pilot Project to the Amadeus Gas Pipeline (AGP) in the Northern Territory.

The pipeline will be approximately 37 kilometres in length, with construction targeted for completion in early 2026. APA’s total construction costs for the project are currently estimated to be around $66.5 million.

The development is subject to certain milestones being met, including obtaining third-party approvals such as a pipeline licence. Revenue will start being earned under the GTA upon first receipt of gas from the Shenandoah South Pilot Project for transportation to the AGP, which is expected to be operational in H1 2026. The GTA will continue until at least 2041.

The SPP is the first of a number of pipeline projects that APA is assessing to transport gas out of the Beetaloo Basin, provided ongoing exploration activities by upstream proponents achieve commercial success. APA’s investment in the SPP does not commit APA to develop further Beetaloo Basin pipelines. The SPP will be funded from APA’s existing balance sheet.

CEO and Managing Director, Adam Watson, said the project highlights both ongoing growth opportunities across APA’s gas transmission network and its critical role supporting energy security and transition.

“The development of the Beetaloo Basin is in the national interest. We know there are significant risks of domestic gas shortfalls in the years ahead and that new sources of supply will be required from 2028 to meet supply gaps.(1)

“Approximately 88 per cent of electricity generated in the Northern Territory comes from gas fired power generation (2) and around 60 per cent of the Northern Territory’s gas supply from 2026 is forecast to come from Tamboran’s first pilot gas development. So, this new infrastructure is critical to ensuring gas from the Beetaloo will be available to power the Northern Territory as existing gas supply sources deplete.

“The measures developed through the Pepper Report will ensure Beetaloo gas can be delivered safely, responsibly and sustainably with strong environmental safeguards. APA will continue to work closely with landholders, First Nations stakeholders, communities, councils and governments as we work through the environmental approvals process.”

(1) Australian Energy Market Operator (AEMO) 2024 Gas Statement of Opportunities
(2) Australian Government, Future Gas Strategy, May 2024, p8

To view the ASX announcement, click here

Source: APA Group

Highlights

• Tamboran Resources Corporation and Daly Waters Energy, LP (DWE) have entered into binding agreements with APA Group (ASX: APA) whereby APA will build, own and operate the 12-inch diameter Sturt Plateau Pipeline (SPP) for the proposed Shenandoah South (SS) Pilot Project.

• The 23-mile (37 kilometre) SPP will connect the proposed Sturt Plateau Compression Facility (SPCF) to the existing APA-owned Amadeus Gas Pipeline (AGP), the delivery point for gas volumes under the Gas Sales Agreement (GSA) with the Northern Territory Government.

• Tamboran and DWE have contracted all foundation capacity on the SPP from the commencement of operations until at least 2041, which reflects the term of the GSA and have competitive access and pricing rights to contract capacity following completion of the initial term.

• APA has materially progressed the SPP project, with detailed design and approval applications well progressed. APA expects to place orders for the long-lead packages before the end of 2024.

• Construction of the pipeline is expected to occur in 2H 2025, with the SPP available to accept gas from the SS Pilot Project in 1H 2026.

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

“We continue to secure key agreements necessary to commence gas production from our proposed Shenandoah South Pilot Project in the first half of 2026. Gas volumes from the Pilot Project will be supplied to the Northern Territory Government through a binding GSA for up to 15.5 years, facilitated by the APA operated SPP.

“With natural gas serving as the largest source of electricity generation in the Northern Territory, Tamboran is proud to play a critical leading role in ensuring a reliable energy supply for Territorians – keeping the lights on and air conditioners running. In delivering this, we are committed to following the highest environmental standards and with the support of Native Title Holders.

“We are excited to continue our partnership with APA Group, Australia’s largest gas pipeline operator, to deliver this project. APA’s experience in the Northern Territory, including ownership of the AGP, which links Alice Springs to Darwin via the Beetaloo Basin, underscores their role in supporting the region's energy infrastructure.” 

To view the full ASX announcement, click here.

Source: Tamboran Resources