TEE weeks from first exploration permit in the NT since 2015

Published 13-JUN-2023 12:03 P.M.

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Our domestic gas exploration Investment Top End Energy (ASX:TEE) just executed its exploration agreement over one of its highest priority permit applications in the Northern Territory.

The exploration agreement had already been approved by the Native Title holders over TEE’s ground back in April - today the agreement was officially executed.

Today’s news clears the pathway for the permit being officially approved - TEE expects the permit to be granted “in the coming weeks”.

Once granted TEE’s ground would represent the first exploration permit granted in the Northern Territory since 2015 — a serious accomplishment and a testament to the hard work of TEE’s management.

We covered the significance of EP 258 being granted in our last TEE note here: First NT gas exploration permit in 8 years - now likely weeks away for TEE

What happens after the permit is granted?

The official granting of EP 258 will mean TEE can get on the ground and start exploring.

The first step after the permit is granted will be to run airborne gravity surveys in the lead up to an on-ground 2D seismic survey.

To date, most of the exploration attention has been focussed on the Beetaloo Basin itself, but TEE is going for ground where most others haven't looked yet — a different higher risk but potentially higher reward exploration strategy if it works.

If TEE’s exploration theory is correct, we think it could alter the way exploration is conducted in the basin. And being a first mover, we hope this could result in a share price re-rate for TEE.

Ultimately, TEE will be looking to prove whether or not the reservoir formations currently being explored in the Beetaloo extend underground into sub-basins surrounding it.