Operational update across domestic gas projects

This morning our domestic gas exploration Investment Top End Energy (ASX: TEE) put out an update on the work programs across its Queensland/Northern Territory gas projects.

Queensland gas project:

TEE’s Queensland project sits ~50km west of the Gilmore gas field, which has previously demonstrated commercial conventional gas production.

Initial seismic interpretation is indicating the same formations present in the Gilmore gas field may extend into TEE’s ground, but no wells have been drilled to test this theory.

TEE has now confirmed that it has reprocessed available existing 2D seismic data for its project and is now looking to integrate this into a new project wide geological model.

This will let TEE enhance its understanding of the overall project area, optimise the location of its upcoming 2D seismic acquisition program and identify potential drilling targets.

TEE expects the modelling and interpretation exercise to be completed in Q4 of this year whilst the company continues discussions with landowners and seismic contractors for a planned ~120km 2D seismic data acquisition program.

Next:

We want to see the company start the 2D seismic data acquisition process ahead of a maiden drilling program in 2023.

Northern Territory gas project:

TEE’s highest priority permits (EP 258 and EP 259) sit on the edge of the Greater McArthur Basin, south of the discoveries Santos, Origin and Empire Energy have made across the Beetaloo sub-basin.

Currently, no seismic data is available over the project area. Still, data collected by TEE’s neighbours seem to suggest that the structures which they have drilled and made discoveries could extend into TEE’s ground.

TEE is looking to test this theory in 2023, but before the company can do any exploration work, it needs to finalise permitting and secure its tenure.

Today, TEE confirmed that it is on track for its on country meetings with native title holders in mid-September.

Given the unexpected delays, TEE confirmed that it has used the time to negotiate the terms of a proposed exploration agreement which it aims to present at the on country meetings to native title holders.

The agreement is a key prerequisite to achieving formal granting of the permit, which should mean TEE is making up for lost time here, aiming to get it all done as quickly as possible.

TEE also confirmed that it hopes to have EP 258 granted before the end of the year and up to ~150km of 2D seismic surveying planned for H1 2023.

Next:

We want to see the company successfully complete the on country meetings and progress towards a formal granting of its key permits surrounding the Beetaloo sub-basin in the Northern Territory.