Industry News

HIGHLIGHTS

•    Retention License applications (RLA) lodged in the Northern Territory (covering 491.01km2) over conventional gas discoveries in the McArthur Basin
•    RLAs cover portions of 100% owned McArthur Basin Exploration Licences 171 and 190.
•    First company in the McArthur Basin to lodge an application for Retention Licences.
•    Important first step towards securing production licenses for existing gas discoveries
•    Gas sale discussions underway targeting gas sales from late 2022 onwards 
•    Existing discoveries close to existing pipeline infrastructure and customers
•    Opportunity to accelerate commercialisation via Compressed Natural Gas “virtual pipeline” 
•    Potential to help regional communities’ transition from diesel to natural gas and renewables
•    Continue working with NT Government to obtaining a Production Licence

The Directors of Armour Energy Limited (ASX: AJQ; “Armour”, or “the Company”) are pleased to announce that it has lodged applications for Retention Licences (RL) in the Northern Territory over portions of its 100% owned Exploration Permits (EP) 171 and EP190 (the “Tenements”).  

The Company is the first operator in the McArthur Basin to lodge applications for Retention Licences and only the second operator since 1990 to submit RLs in the Northern Territory. 

The Company has been targeting both the conventional and unconventional gas potential in these Tenements since 2012 and through successful exploration programmes through 2012 and 2015 has made multiple conventional gas field discoveries in the Coxco Dolomite conventional reservoir with the Glyde 1 ST1 and Cow Lagoon 1. 

The Glyde 1 ST1 flowed sales quality natural gas on DST at a rate of 3.33 MMscf/day. Lamont Pass 3 encountered 520m of oil bearing Barney Creek Shale. As a result of successfully flowing hydrocarbons from Glyde 1 ST1 and Cow Lagoon 1, the grant of RLs will allow the Company to progress the discoveries within the RL area towards commercial development and the award of petroleum licences. The Company has booked Contingent Resources based on the Glyde 1 ST1 discovery (as announced to the ASX on 24 April 2013 and 21 September 2015). 

RLAs are an intermediate step towards commerciality, allowing for further appraisal works, marketing arrangements, pipeline feasibility studies, environmental studies, and entering into land access and Native Title agreements.  If granted, the RLs will put the Company in a good position to take advantage of the current gas shortage and the Northern Territory’s and Federal Government’s “Gas Led Recovery” objectives, by providing local gas to local businesses and communities.  

The Company’s Tenements are well positioned and are close to existing local major operating mine gas consumers and local and regional gas pipeline infrastructure. Proximity to this pipeline infrastructure provides prospective access for future gas development within the RLAs either North to supply Darwin, or to the East Coast Market. Alternately, the Company has also identified to potential to accelerate commercialisation via Compressed Natural Gas “virtual pipeline” solution providing accelerated access to local and regional existing and prospective gas demand.

The Company is in preliminary discussions with third parties for the supply of gas with the intention of producing and selling gas from 2022 onwards. The Company is also investigating initiatives to help supply energy to remote communities and assist with transitioning those communities from diesel powered generators to combined natural gas and renewable energy solutions similar to deployed in remote areas of central and north Queensland.  

Armour Energy’s CEO, Brad Lingo said:

“This is a great step towards supplying local Northern Territory businesses and helping the Northern Territory Government and the Federal Government with their Gas Led Recovery objectives. The Company is also excited about the opportunity to help remote communities’ transition from diesel to gas to renewable energy.

The Company has made a strong commitment to deliver on the strategic priorities outlined in August 2020 and we are very pleased to show investors that we can deliver on those commitments. More work clearly needs to be done but to deliver a material reduction in debt against the backdrop of the challenges that 2020 brought with the COVID-19 pandemic shows the resilience and commitment of the Company to deliver for shareholders.”

This Announcement is Authorised by the Board of Directors
Karl Schlobohm
Company Secretary

For further information contact:

Sarah Schuiringa – Marketing & Communications
07 – 3303 0619

Community Bulletin #37 - SREBA studies update

The NT Government has determined that a Strategic Regional Environmental and Baseline assessment (SREBA) is required for the Beetaloo Sub-basin, in accordance with recommendations from the Independent Scientific Inquiry into Hydraulic Fracturing.

The Framework and technical guidance notes for each of the studies were released in 2020. There are six domains that comprise a SREBA, which are all at different stages of progression and are detailed below. A SREBA must be completed before any production approvals for unconventional gas activity occurs.

Beetaloo Regional Reference Group
The Beetaloo Regional Reference Group (BRRG) has been established. The BRRG is a consultative forum for community views and input regarding the SREBA studies for the specific region. Members are drawn from organisations based in the Beetaloo region:

• Barkly Regional Council
• Roper Gulf Regional Council
• Katherine Town Council
• Northern Land Council
• NT Farmers
• Sunrise Health Services
• Territory Natural Resource Management
• Territory Resources Services Association
• Sturt Plateau Best Practice Group

The objectives of the BRRG are to:

• provide a forum for members to discuss issues of community interest related to SREBA baseline research and studies
• draw on local knowledge and enhance the community voice in guiding and shaping SREBA baseline research and studies within the scope of the BRRG
• build community understanding of SREBA-related projects or activities
• communicate SREBA activities, projects and outcomes to local communities, and to relay local community feedback on these to DEPWS, researchers and specialists
• contribute to the development of the final SREBA study reports and regional baseline report and provide feedback on these.

Read the Terms of Reference for the Beetaloo Regional Reference Group PDF (453.7 KB).

Progress updates for the six SREBA domains in the Beetaloo Sub-basin

• Terrestrial studies: Detailed environmental mapping has been undertaken in the Beetaloo as part of the Geological and Bioregional Assessment (GBA) program, with further ecological studies as part of the SREBA to commence early in the dry season. The Scope of Works has been finalised.
• Aquatic studies: Some work has been undertaken as part of the GBA, with further studies under SREBA to commence early dry season once the scope of works is agreed.
• Water studies: Some groundwater studies have been undertaken as part of the GBA program. An expert workshop met mid-December to review and confirm the draft Scope of Works, with a final draft near completion. Field work is planned to commence early dry season.
• Greenhouse gas studies: Initial baseline assessments were undertaken in the region during 2018-2019. CSIRO have been contracted to undertake the SREBA Methane and Greenhouse Gas studies with field work commencing early in the dry season, with desk-based studies currently underway.
• Environmental health studies: The procurement for the development of a scope of works is under negotiation and expected to be finalised by the end of February.
• Social, Cultural and Economic studies: consultation commenced in the last quarter of 2020 to develop a scope of works, information obtained during the consultation is currently being reviewed for the next stage.

Leading global energy producer EDL will build, own and operate the Jabiru Hybrid Renewable Project to supply power to the remote, off-grid Northern Territory town of Jabiru.

EDL Chief Executive Officer James Harman said that the company welcomed the opportunity to work in partnership with the Northern Territory Government to deliver sustainable energy for Jabiru, as the community transitions from its mining legacy to its future as a tourism and services hub.

“EDL began more than 30 years ago with the development of the Pine Creek Power Station in the Northern Territory, and we’re very proud to continue our commitment to the Territory with Jabiru being our 100th site world-wide.

“Once completed, our hybrid renewable power station will provide Jabiru with at least 50% renewable energy over the long term, without compromising power quality or reliability,” said Mr Harman.

“We are proud to contribute to the Territory’s 50% renewable energy target by 2030 through this sustainable energy solution.”

The project will integrate 3.9MW solar generation and a 3MW/5MWh battery, with 4.5MW diesel generation to balance sustainability with reliability. Construction will begin shortly.

The diesel power station will be completed by the end of 2021, and the solar farm and battery will come online in early 2022.

Artist impression of EDL’s Jabiru Hybrid Renewable Project

Download EDL's full media release here

For more information, please contact

Vivian Lim, Head of Communications

0434306131 or vivian.lim@edlenergy.com

GLOBAL energy producer EDL has announced plans to build, own and operate a hybrid power plant for the off-grid Northern Territory town of Jabiru.

The company has won a contract to build the new power station, as the nearby Ranger Uranium Mine operated by Energy Resources Australia, which up until now powered the town, winds down. 

Source: Energy News Bulletin

Read more here

SANTOS has defended the scope of its decarbonisation plans as activist shareholders lodge a resolution to compel to disclose how it will align itself with the goals of the Paris Agreement.

The resolutions, put to Santos by Market Forces,  will be put to a vote when shareholders meet on April 15. 

Source: Energy News Bulletin

Read more here

BEETALOO Basin trailblazer Empire Energy has received the core results from its Carpentaria-1 well, confirming Middle Velkerri Shale targets in its EP187 have world-class rock characteristics, possibly even better than some US shale basins.

The frontier Northern Territory shale play has attracted international attention, which the Territory government hopes will turn into investment in the vast gas and liquids-rich Beetaloo and McArthur basins. 

Source: Energy News Bulletin

Read more here

AUSTRALIAN prime minister Scott Morrison gave a special mention of the Beetaloo Sub-basin in his speech to the National Press Club yesterday.

The Morrison government released its strategic plan for development of the Beetaloo Sub-basin just last month, outlining federal commitments to bolster investment in the Northern Territory's newest gas and liquids play. 

Source: Energy News Bulletin

Read more here

THE federal government has established 13 regional hydrogen clusters across Australia, investing A$1.85 million in an effort to create a nationwide virtual cluster to foster a globally competitive hydrogen industry.

The clusters will act as a collaborative hub for companies to share expertise and skills in order to ramp up the burgeoning industry which could increase Australia's GDP by up to A$26 billion, according to a 2019 Deloitte report. 

Spearheaded by National Energy Resources Australia, the national, virtual cluster is designed to create a unique brand for Australian hydrogen and expertise and kickstart the development of hydrogen supply chains and identify gaps in development, deployment and commercialisation of new hydrogen technologies. 

The regional hydrogen technology clusters, spanning across all states and territories, have been created following a seed funding selection program NERA started in September last year. NERA has also been able to leverage a range of funding commitments from state and territory governments around the country as well as funding from industry. 

Source: Energy News Bulletin

Read more here

Electricity Market Priority Reforms Program Papers Released

In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has today released policy position and consultation papers on priority electricity market reforms.

Addressing system security, reliability and efficiency; encouraging private investment and maximising the amount of renewable power in our network are the main focus points of the final position paper on dispatch and settlement, and consultation papers on essential system services and reliability reforms.

The Northern Territory Electricity Market Priority Reform Program has been designed to promote competition by facilitating private sector investment in lower cost and cleaner technologies.

Territory households and businesses will benefit from the anticipated downward pressure on electricity costs as a result of a more competitive and lower-cost industry.

The Territory’s power systems are evolving as we transition to solar.

The Priority Reform Program will assist government in delivering cleaner and cheaper power for Territorians by implementing reforms to:

• Dispatch – ensuring that the most cost-effective combination of generation (including thermal and renewable generators) is dispatched in the Darwin-Katherine system. This will be achieved by allocating the System Controller responsibility for scheduling generators based on up-to-date information about generator costs and availability.
• Settlement – facilitating private sector investment by making it easier for retailers and generators, including new renewables generators, to buy and sell electricity in the Darwin-Katherine system. This will be achieved by introducing financial settlement by the Market Operator.
• Essential System Services – ensuring the changing technical requirements for system security are met in the most cost-effective way by enabling their provision by the full range of capable technologies, including batteries and renewables generators.
• Reliability – ensuring system reliability meets customer expectations while also keeping costs are as low as possible.

Electricity industry stakeholders are being fully consulted on the details of the priority reforms.

Stakeholders are invited to participate in further stakeholder working group consultation on the essential system services and reliability consultation papers by making written submissions and attending stakeholder workshops.

Final position papers on the essential system services and reliability reforms are expected to be released by mid-2021.

The announcement of the Government’s priority electricity market reforms follows the Government’s announcement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.

Procurement of the BESS is progressing on track for delivery in the second half of 2022.

The Northern Territory Electricity Market Priority Reform Program position and consultation papers can be found at https://business.nt.gov.au/electricityreforms 

Quotes from Minister for Renewables and Energy, Eva Lawler:

“Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.

“These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.

“Electricity market reform is complex. Government has been carefully working through stakeholder feedback and design considerations to inform its priority electricity market reforms.”

 

Sun Cable and the Northern Territory Government (NTG) today signed a milestone agreement to facilitate the Australia-ASEAN Power Link (AAPL), that will see the Territory host one of the world’s largest renewable energy systems.

The project includes a solar and storage precinct near Elliott, in the Barkly Region, high voltage direct current (HVDC) transmission connecting the precinct to the Darwin-Katherine Interconnected System (DKIS) and proposed Middle Arm Battery and a HVDC submarine link to Singapore.

The 70-year, $22B project will create about 1500 jobs during construction and 350 jobs during operations, as well as $1B in exports.

Signing on behalf of the Northern Territory Government, Chief Minister Michael Gunner said:

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“This project will transform the Territory into a renewable energy powerhouse, and cement our position as Australia’s comeback capital,” the Chief Minister said.

Sun Cable CEO David Griffin said the AAPL project would generate and transmit dispatchable, competitively priced, renewable energy at scale.

“This will provide affordable, reliable energy to support industrial growth in Darwin, as well as supplying up to 20% of Singapore’s electricity needs,” he said.

“The Australia-ASEAN Power Link project will help the Northern Territory make deep cuts to its emissions intensity by decoupling economic growth from carbon pollution,” he said.

Benefits of the project include:

• a world-leading renewable energy transmission system;
• economic diversification for the Northern Territory;
• reliable, affordable dispatchable power;
• providing cost effective electricity supply to facilitate new manufacturing, minerals processing and data centre projects;

• a major boost to the Territory’s construction sector and a range of other services and suppliers;

• a substantial reduction in greenhouse gas emissions in the Northern Territory, Australia and the Indo-Pacific, helping the Territory achieve its goal of net zero carbon emissions by 2050;

• Sun Cable will establish a Renewable Energy Centre of Excellence in the Territory, drawing on existing local solar, electricity and infrastructure expertise to grow research and development of renewables.

Sun Cable today signed a Project Development Agreement with the Northern Territory Government that recognises the AAPL’s Major Project Status.

Sun Cable will prepare a Territory Benefits Plan, including an Aboriginal workforce development plan and local participation strategy to maximise local jobs and procurement.

The company has engaged Darwin company EcOz to prepare its Environmental Impact Statement for the project.

The project has drawn on the services of another dozen Territory companies, covering environmental services, ecological and geotechnical surveys, architecture, legal, strategic communication and maintenance.

The company expects AAPL’s financial close to be in late 2023, with first electricity to Darwin by 2026 and Singapore from 2027.

Media inquiries

Jane Munday, True North Strategic Communication on 08 8981 6445 or 0427 880 083