Update on neighbours exploring for gas in the Northern Territory

This morning our domestic gas exploration Investment Top End Energy (ASX: TEE) provided an update on the activity of its neighbours in the Beetaloo sub-basin in the Northern Territory.

TEE detailed the activities of:

1. Santos and Tamboran Resources - Who are production testing two wells (T2H and T3H) and currently reporting normalised flow rates of 7.4 mmscfd over 1,000 metres (T3H) and 4.3 mmscfd over 1,000 metres (T2H).
2. Empire Energy - Which just drilled and flow tested its Carpentaria-2H well reporting a normalised flow rate of 2.8 mmscf / day per 1,000m of horizontal section

For some context on these results, industry analysts and operators in the basin consider a flow rate of 3 million standard cubic feet per day (per 1,000m of horizontal well section) as the “commerciality standard”.

This means the results from its neighbours are either exceeding commerciality standards or coming extremely close.

We touched on all of the majors actively exploring the region and how we would be watching their exploration initiatives closely in our most recent TEE note.

We think that any success by TEE’s neighbours would bring market interest in the basin and eventually flow through to interest in the permits TEE holds in and around the region.

We see these developments out of Empire as positive as part of the overall macro picture regarding the Beetaloo sub-basin.

Next:

We want to see TEE conduct its on-country meetings and secure tenure over its permits that sit closest to the Beetaloo sub-basin.