Echelon Resources has acquired an exploration permit in the Northern Territory’s Amadeus Basin.
The new exploration area (EP145) builds on Echelon’s core asset area in the Northern Territory, where the company produces gas from its Mereenie, Palm Valley and Dingo fields.
Two exploration wells were drilled in the EP145 permit area in the early 1980’s. The West Walker-1 well was a gas discovery, encountering gas bearing sands in the Pacoota Sandstone and producing 3MMscf/d on testing.
Echelon plans to conduct high resolution 3D seismic testing at the site, followed by drilling to define the discovery, aiming to tie the gas resource into the Northern Territory gas market as quickly as possible.
“This is very exciting acreage, with a discovery on it, in a corner of the world we know well, in a market that has great ambitions that all need gas,” Echelon chief executive officer Andrew Jefferies said.
“Given the proximity to infrastructure, the supportive Northern Territory regulatory environment, and our connections to both the burgeoning East Coast and Northern Territory markets, it’s my hope that we can be cooking with EP145 gas in the coming years.”
The Northern Territory Government welcomed the acquisition as a vote of confidence in the Territory’s attractive regulatory environment and world-class natural resources.
“Acquisitions like this show that industry has real confidence in the Northern Territory and the clear, consistent approach the government is delivering,” Minister for Mining and Energy Gerard Maley said.
“We’re providing the certainty investors and proponents need to back projects that create jobs, grow the economy, and bring real benefits to communities across the Territory.”
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