Industry News

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

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