Update on permitting for NT gas projects

This morning our domestic gas exploration Investment Top End Energy (ASX: TEE) updated the market on developments across its Northern Territory gas projects.

Our key takeaway from today's update was that TEE confirmed that key decision makers from the native title holder groups returned positive feedback with no further changes to the 'Exploration Agreement' proposed.

This should mean that a lot of the negotiation process should now be completed.

We note that TEE is still waiting on some key decision makers who couldn't attend the on-country meetings in November to review the agreement before a final decision is made.

TEE also confirmed that it is "working with the NLC to determine the most timely and efficient means of facilitating a decision, acknowledging the upcoming ceremonial business period in December".

We hope that TEE can get its native title agreements signed off before the end of this year or very early into Q1-2023.

The execution of the exploration agreement by the native title holders is the key prerequisite before TEE gets its permits granted.

While all of this is ongoing, TEE is also progressing with approvals and access agreements for its planned ~150km 2D seismic survey, which it hopes to get done in H1-2023 - of course, all of this is predicated on TEE securing its permits on time.

Why is TEE looking to acquire seismic data?

TEE's highest priority permits in the Northern Territory (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.

At the moment, TEE has no seismic data available over the project area, but 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.