Industry News

The Operator of the Mereenie Joint Venture, Central Petroleum Ltd (ASX:CTP) (“Central”) has advised that mobilisation of the Ventia 101 Rig to the Mereenie Field in Permit OL4/OL5, within the Amadeus

Basin, has been completed and the West Mereenie -29 development well spudded on 5 December 2024.

West Mereenie-29 (WM-29) is the first of two wells being drilled in the current campaign at Mereenie. The well is scheduled to take circa 30 days to drill to a primary target depth of 1,450mMD in the Pacoota-3 sandstone.

Following WM-29, the Ventia Rig will move to the West Mereenie -30 (WM-30) location and drill the second of the two wells. WM-30 is similarly scheduled for circa 30 days to drill to the primary target Pacoota-3 sandstone at an estimated depth of approximately 1,681mMD.

These wells are part of the Joint Venture’s ongoing appraisal/development of the Mereenie field and are intended to increase gas production to meet Northern Territory market demand. These wells target a material portion of our 7PJ Mereenie 2P Undeveloped gas Reserves (net to ECH as per our 2024 Annual Report*), and we are expected to start bringing the wells online in Q1 2025.

Please see attached Central Petroleum (Operator of the Mereenie Field) media release for further details.

Echelon CEO, Andrew Jefferies, commented that “The Joint Venture has worked together to optimise the drilling technique for these wells over the last couple of years. It is exciting to see the rig hove to and get drilling. We hope to have the gas from these wells hooked up and cooking up your Quandong Chutney. Gas it’s the fuel for tomorrow, today.”

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%).

*The statement of net undeveloped reserves is unchanged from the full reserves disclosure included in our 2024 Annual Report (see pages 12-15). Echelon is not aware of any new information or data that materially affects the information included in our 2024 Annual Report and all the material assumptions and technical parameters continue to apply and have not been materially changed. The compliance statements included in our Annual Report remain applicable.

Source: Echelon 

Horizon Oil Limited (Horizon) is pleased to advise the commencement of infill drilling operations in the Mereenie Field, Permit OL4/OL5, Northern Territory, Australia. The Ventia 101 rig has been mobilised to the Mereenie Field for a two well campaign, and the West Mereenie-29 well was spudded this morning, 5 December 2024. The drilling program is expected to run for approximately two to three months.

The drilling program comprises two crestal gas production wells, West Mereenie -29 and -30 (WM-29 & WM-30). The wells are expected to increase near term gas production rates from the existing fields, with up to an additional 6TJ/d (gross) of incremental production able to be sold on a firm basis into the recently executed NT Government Gas Sales Agreement (NT GSA). The wells are targeted as nearby offsets from existing Pacoota 3 Reservoir producers.

Central Petroleum is operating the infill drilling program, and Horizon’s share of the forecast drilling costs will be funded from existing cash reserves.

Horizon CEO, Richard Beament added:

“It is pleasing to be targeting increased gas production rates from Mereenie in support of the domestic market. The drilling of a two well infill drilling campaign so soon after completing the Mereenie acquisition, along with the signing of a long-term strategic gas supply agreement with the NT government are tremendous outcomes and assist in further unlocking the value potential we see in Mereenie. This drilling program demonstrates the continuation of our strategy of investing in production growth.”

Source: Horizon Oil Limited Website

More than $170 million in private investment is flowing into onshore gas exploration and production in the Beetaloo Sub-basin and Amadeus Basin, reinforcing the Territory’s role as a leader in energy development.

Minister for Mining and Energy Gerard Maley said this significant investment was a key step in advancing gas production, with first gas from the Beetaloo Sub-basin anticipated in the second half of 2025, subject to regulatory approvals and successful appraisal outcomes.

“The Beetaloo Sub-basin’s development is a top priority for the CLP Government, as it delivers energy security, drives private investment, creates jobs, and strengthens the Territory’s competitive advantage,” said Mr Maley.

“Developing these resources is pivotal, not only to rebuilding the Territory’s economy but also safeguarding our regional and national energy security.

“Investment like this is crucial to the development of the onshore gas industry in the Beetaloo Sub-basin, as well as to the expansion of existing production activities in the Amadeus Basin.”

Mr Maley last month visited the Beetaloo Sub-basin to inspect current operations by Tamboran Resources at its Shenandoah South site.

“Both Tamboran and Empire Energy are leading the way in activity and investment in the Beetaloo, with both companies preparing to deliver gas to the Territory market,” he said.

“The CLP Government is rebuilding the Territory’s economy and backing private investment, with significant planning already underway for critical infrastructure and services to support industry’s huge investment in the highly prospective Beetaloo."

Empire Energy last week announced it had secured a $65 million Beetaloo Financing Package which would see an expansion of exploration, appraisal and development activities for its Pilot project. The company last month commenced drilling its Carpentaria 5H well.

Significant exploration programs are underway in the Beetaloo, with Santos nearing completion of its 255km seismic survey.

This is a low impact survey to gain a better understanding of the geology of the area to inform planning for drilling and flow testing of two new wells.

In the Amadeus Basin, west of Alice Springs, Central Petroleum and its joint venture partners continue to invest in gas production and increasing its supply to the Territory, with the drilling of two new wells this month.

Central Petroleum has been producing gas since the early 1980s, and along with its joint venture partners will continue to plan for additional production wells in 2025.

“This $170 million private investment is key to driving economic growth, supporting critical industries, and cementing the Territory as the preferred place to invest and do business in resource exploration, mining and gas production,” said Mr Maley.

The investment from Empire, Tamboran, Central Petroleum and Santos is on exploration and appraisal activities.

“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 thousands of jobs and generating substantial revenue to fuel the Territory’s prosperity,” he said.

Source: Northern Territory Government Newsroom

Environmental regulators are in the field ensuring that the onshore gas industry is ready for the upcoming Wet Season.

We know from the Bureau of Meteorology that the wet season in the Top End could be “more severe” this year so it’s important the onshore gas industry is prepared.

When it comes to wet season preparedness the Environmental Regulator closely monitors how wastewater is managed onsite.

We ensure appropriate freeboard levels are maintained throughout the wet season. This reduces the risk of overtopping of wastewater tanks. We also require wastewater to be contained in enclosed tanks prior to any significant rainfall event.

In addition to getting regular reports from industry during the wet season about their freeboard, we also conduct onsite inspections. Inspections are crucial in confirming compliance firsthand.

Last month we undertook inspections in the Beetaloo sub-basin to ensure wet season preparedness. We were joined by our co-regulators in the Water Resources Division. In addition to wastewater management, we also inspected tanks to ensure no leaks and checked that erosion and sediment control measures were in place prior to the upcoming wet season. We observed good compliance.

Last year we undertook 27 inspections prior to and during the 2023-34 wet season and we will be going out again this wet season.

Inspections are challenging for regulators during the wet season because access to site is sometimes cut off by flooding. In the past we have done flyovers in helicopters to ensure we’re monitoring compliance when the risks of wastewater tanks overtopping are highest.

We are committed to being a risk-based and targeted regulator and focussing on activities that have the highest risks. You can read more about our approach to regulation on the NTEPA website.

We have also published a regulatory statement to clearly communicate how we regulate wastewater during the wet season.

Source: Department of Lands, Planning and Environment

The Environment Centre NT (ECNT) has failed in its latest bid to stop the Northern Territory developing an onshore gas industry.

The NT Civil and Administrative Tribunal this week rejected a stay application lodged by the ECNT to overturn the Territory Environment Minister’s decision to approve Tamboran’s Environmental Management Plan around its Shenandoah South gas prospect.

ECNT sought an order for then Environment Minister Kate Worden’s original decision be set aside because it was not satisfied the information provided in the EMP complied with existing regulations around risks of wastewater spills and underground aquifers.

ECNT also wanted the environmental management plan referred to the NT EPA for independent assessment.

NTCAT president Mark O’Reilly rejected the ECNT’s bid for a stay in the EMP process, saying he was satisfied it would result in prejudice to Tamboran.

He said he was not satisfied the ECNT had established the balance of convenience lies in favor of granting a stay.

“In circumstances where the legislative and regulatory scheme has been informed by and amended following the (Pepper inquiry); where the Minister has ostensibly adhered to that regulatory scheme; where minimum standards and conditions apply; and where there is an obligation to remedy any environmental damage, it is not clear to me the level of risk described by the applicant is beyond what is contemplated as being acceptable under the scheme,” NTCAT found.

“I am not persuaded that it is obvious that the applicant’s case has good prospects of success or even substantial success”.

President O’Reilly identified a delay in the commencement of Tamboran’s operations would impact the company negatively in a “significant way”.

He was critical of ECNT’s delay in bringing the stay application and was satisfied that the prejudice experienced by Tamboran has been exacerbated by the timing of the application for a stay.

He found Tamboran was entitled to rely on the decision of the Minister to approve the EMP even after ECNT filed its initiating application on July 4 2024, and was not obliged to stop approved works at that time or thereafter.

Mr O’Reilly found on the face of the material provided by the parties, the Minister and the NT EPA had considered the level of risk and determined that it would be within what is envisaged under the Act and Regulations.

He was not satisfied that ECNT has established that the public interest in avoiding risk outweighs the public interest in facilitating exploration.

A broader application by ECNT to stop Tamboran producing gas at the Beetaloo is still to be heard.

Tamboran chief executive Joel Riddle said the ECNT’s decision was a “clear victory”.

“This positive decision also shines a light on the ‘public interest’ argument so often used by groups like the Environment Centre NT. This decision found the “public interest” argument used by the ECNT did not outweigh the very real public interest in facilitating gas exploration in the Northern Territory.

“Tamboran has full confidence in our environmental management plan and the NT Government’s approval processes.”

ECNT deputy director Stephanie Griffin was encouraged by the NTCAT’s decision.

“Despite the Tribunal’s decision not to grant the Stay Application, we are encouraged that the Tribunal President was satisfied that we raised serious issues for determination. We took on this case to protect the Territory’s water, our free-flowing rivers, which are at risk from practices like fracking.”

“Our challenge of the environmental approval that greenlit Tamboran’s Beetaloo fracking project is still ongoing, and we look forward to putting further evidence before the Tribunal at the substantive hearing next year.”

“This is the first ever merits review challenge of a fracking approval in the Territory. As the Tribunal President made clear, this merits review process was designed to increase transparency and scrutiny of certain decisions, like the Tamboran fracking approval. We will continue to exercise our rights to ensure fracking approval processes are transparent and subject to appropriate scrutiny.”

To view the full article online, click here.

Source: The NT News

The Environmental Defenders Office (EDO) has been hit with $9 million in legal costs after a bruising defeat in the federal court, where Justice Natalie Charlesworth delivered a withering critique of the evidence it presented.  

Acting on behalf of Tiwi Islanders, the activist group had sought to challenge Santos' $5.7 billion Barossa gas project, alleging threats to underwater cultural heritage.  

Justice Charlesworth's ruling dismissed the claims, marking a significant setback for the activist-led legal action. 

Earlier this year, the federal court ruled that the claim made by a group of 11 Tiwi Islanders—supported by EDO—asserting that the pipeline would harm areas of cultural significance was not "broadly representative" of the views held by First Nations people in the area.  

The decision favoured Santos, with the court dismissing the application and discharging the injunction that prevented pipelay activities south of the kilometre 86 (KP86) point along the Barossa Gas Export Pipeline in the Timor Sea.  

Subsequently, Santos started legal proceedings against the legal group to recoup costs.  

Joshua Burgoyne, the NT minister for lands, planning, and environment, welcomed the court order, saying it had positive ramifications for the Territory. 

"This decision calls out environmental ‘lawfare,' where environmental groups seek to stall and stop proponents from continuing developments," Burgoyne said.  

"We won't allow activists and economic vandals to manipulate their way into halting or delaying key Territory projects with mistruths and false information." 

Burgoyne added that the federal court's decision was a testament to the Territory's and Commonwealth's environmental laws, showing they withstood robust scrutiny through the court system. 

In April, Santos formally petitioned the federal court to subpoena several activist entities, namely Sunrise Project, ECNT, Market Forces, and Jubilee, and secure court approval to access activists' financial records and correspondences.   

This calculated manoeuvre aims to ascertain whether these separate organisations contributed financially to the EDO, which has received funds from the Australian government.  

The documents subpoenaed in the ongoing court battle between Santos and EDO were published on Wednesday, revealing what the O&G peak body, Australian Energy Producers, describes as "inappropriate conduct."   

Australian Energy Producers urged the government to stop funding EDO, citing, "It is unacceptable that the EDO continues to receive $2 million a year in taxpayer funds from the federal government to disrupt and delay critical energy projects and put Australia's economic and energy security at risk".  

EDO states on its website that it uses the law to protect Australia's environment, people, and wildlife.  

Source: Energy News Bulletin 

The CLP Government is delivering on its commitment to rebuild the economy by appointing an Approvals Fast Track Taskforce.

The taskforce, consisting of industry experts from across the Northern Territory, will provide recommendations to Government on how to reform regulatory processes, and reduce approvals timeframes.

Chief Minister Lia Finocchiaro said: “The taskforce will operate for six months and play a key role in streamlining approvals, and reducing red tape, to grow business and investment opportunities in the Territory.”

The taskforce, which held its first meeting on Tuesday, will be chaired by former Property Council NT President, Mark Garraway.

The membership consists of:

·       M+J Builders Director, Michael Buckley

·       NT Link Director, Tony Smith

·       Territory Instruments Managing Director, Stuart Kenny

·       Humpty Doo Barramundi CEO, Dan Richards

·       Foxalicious Fruit Owner, Andrew Dalglish

·       Louw Group Director, Hermanus Louw

·       Stone House, Charlie’s of Darwin and Darwin Distillery owner, Bec Bullen

“The CLP has promised to rebuild the Territory’s economy which was trashed under the previous government, and this Taskforce, along with the Territory Coordinator, will play a key role in getting the NT moving in the right direction,” said Mrs Finocchiaro.

“The Taskforce will provide real world advice to Government on options for decreasing regulatory processing times and easing the burden on business and industry, focussing on reforms that will benefit the greatest number of businesses.

“It will have a broad remit but will focus on small businesses, including in the construction, retail, accommodation and hospitality sectors.

“The Taskforce will take a risk-based approach, seeking to balance the economic benefits of improved investment and economic development with the need to avoid undue risk for Territorians.”

Source: Northern Territory Government Newsroom

Office of the Chief Minister - Hon. Lia Finocchiaro

Empire Energy Group Limited (“Empire”) is pleased to announce it has executed binding term sheets with Macquarie Bank Limited (“Macquarie”) for the establishment of new credit facilities totaling A$65 million. Together with existing cash on hand, proceeds from the credit facilities will be applied to Carpentaria-5H (“C-5H”) and the Carpentaria Gas Plant and associated infield infrastructure.

The A$65 million credit facilities with Macquarie comprise:

• R&D Facility (A$30 million upsized from A$2.25 million existing facility): Facility sized at 80% of the FY2024 and FY2025 estimated tax rebates under the Australian Government’s Research and Development (“R&D”) Tax Incentive Scheme. The R&D Facility provides Empire with additional liquidity and will allow Empire to better manage its working capital requirements. Funds can be applied to Northern Territory exploration, appraisal and development activities including C-5H and construction of infield infrastructure; 
• Performance Bond Facility (A$5 million, same size as existing facility): to meet Empire’s Northern Territory environmental bonding obligations through Macquarie bank guarantees in favour of the Northern Territory Government on a non-cash-backed basis; and 
• Midstream Infrastructure Facility (A$30 million new facility): proceeds can be applied to the refurbishment and construction of the Carpentaria Pilot Gas Plant. Repayment of the Midstream Infrastructure Facility will be via a tolling fee. 

The R&D and Performance Bond Facilities represent a refinancing of Empire’s existing credit facility with Macquarie.

Availability under the R&D Facility has been increased from 60% of expected R&D tax rebate under the existing facility to 80% of expected R&D tax rebate while maintaining the same interest margin.

Pricing for the Performance Bond Facility has been reduced from BBSW + 10% to a fixed 10% per annum on issued guarantees.

The other key terms of the credit facilities are included in Appendix A to this announcement.

Carpentaria-5H Drilling Update

The surface section of the C-5H well has been successfully drilled and cased, effectively isolating the Cambrian Limestone Aquifer. Empire is currently drilling ahead in the vertical section of the intermediate hole at a depth of 770 metres MD at the time of publication of this release. The well path will soon begin building and turning towards the Middle Velkerri B shale target interval. After the intermediate section is drilled and cased, Empire will drill and case the horizontal section.

Source: Empire Energy Group

The CLP Government is delivering on its commitment to ease cost of living pressures by increasing the Home and Business Battery Scheme bonus from $5,000 to $12,000.

From December 1, 2024, the boost to the scheme will provide Territorians with greater access to renewable energy solutions, lowering energy bills and supporting local businesses involved in the supply and installation of solar PV systems and batteries.

Minister for Renewables, Gerard Maley, said it was part of the CLP Government’s commitment to practical outcomes for Territorians.

“As promised, we are more than doubling the battery bonus for Territorians,” he said.

“We understand the challenges power prices present, and this increase will provide an accessible entry point for households and businesses looking to make the switch to renewable energy.

“This is about providing practical solutions to ease affordability pressures while also providing greater energy grid stability.”

The Home and Business Battery Scheme offers eligible homeowners and businesses access to up to $12,000 for a battery subsidy of $400 per kilowatt-hour of usable system capacity.

“Our government is doubling the funding pool from $3 million to $6 million, giving more Territorians access to solar batteries and inverters,” said Mr Maley.

Eligible owners can use the grants to either:

• Buy and install a solar photovoltaic (PV) system with an eligible battery and inverter, or
• Buy and install an eligible battery and inverter, to complement an existing solar PV system.

Batteries allow households and businesses to maximise use of electricity generated from rooftop solar PV systems while contributing to grid stability and reducing power system costs.

“By charging their battery during the day, families and businesses can store energy to use during peak times or when it is cloudy, making it easier to manage costs and run their appliances, including aircons, more efficiently,” said Mr Maley.

The grant is available from 1 December 2024 for 12 months, or until the $6 million funding pool is fully subscribed.

The CLP Government is also doubling the peak feed-in-tariff so households and businesses can get 18.66c/kWh between 3pm and 9pm year-round for electricity exported to the grid.

The new rate will come into effect from July 1, 2025.

This is to ensure Power Water Corporation ICT upgrades in early 2025 are complete, and to enable the necessary changes to billing systems to reflect the peak feed-in-tariff.

“Supplementing grid supplies with household and business solar batteries means we can reduce the peak demand on gas-fired generation, increase energy reliability and cut emissions,” said Mr Maley.

The higher feed-in-tariff during the peak period of 3pm to 9pm will encourage people with solar and batteries to export more power at these times, easing pressure on the grid.

From 1 July 2025, eligible customers will automatically receive the higher feed-in-tariff from their electricity retailer, potentially saving them an average of $150 per year.

Learn more about the battery scheme grant and feed-in tariff by visiting the Territory Renewable Energy website, and access the grants via Grants NT.

Source: Northern Territory Government 

Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) is pleased to announce the spudding of the Shenandoah S2-4H (“SS4H”) horizontal well (previously referred to as the SS3H well) 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”).

SS4H is the second well of the Shenandoah South Pilot Project and will be drilled from the same well pad as the Shenandoah S2-2H ST1 sidetrack well (“SS2H ST1”) using the H&P super-spec FlexRig® Flex 3 Rig.

The SS4H well is estimated to be drilled to a total measured depth of 20,669 feet (6,300 metres) including a horizontal section of approximately 10,000 feet, (3,000 metres), targeting the Amungee Member B-shale.

Following the drilling of the SS4H well, Liberty Energy will complete the stimulation of the SS2H ST1 and SS4H wells, with 34 and 60 stages planned at the respective wells. Stimulation of both wells is expected to commence in Q1 2025 with 30 day initial production flow rates expected in the same period.

Falcon Australia will continue its participation in the Shenandoah South Pilot Project at its elected participating interest of 5%.

Philip O’Quigley, CEO of Falcon commented:

“The spudding of the SS4H horizontal well is an exciting next step in the development of the Beetaloo Sub-basin and we will look forward to updating the market as operations progress.”

To view the full press release, click here.

Source: Falcon Oil & Gas Ltd.