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- Carpentaria unconventional shale gas fairway contains discovered gas of 1,739 petajoules
- Retention licence secures discovery, holding tenure while development potential is evaluated,
- Approval, consent and agreement for the sale and beneficial use of appraisal gas
- BUG approval allows appraisal gas to be sold or otherwise beneficially used
Beetaloo Energy Australia (ASX: BTL) has been granted the 605 sq. km retention licence 11 (RL11) over the Carpentaria unconventional shale gas fairway.
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The NT Department of Mining and Energy (DME)n has granted the RL11 to the company’s wholly owned subsidiary, Imperial Oil & Gas, which has accepted the grant of RL11.
RL11 has been excised from exploration permit 187 (EP187), the remainder of which will continue to be held as an exploration permit.
MD, Alex Underwood, said the grant of RL11 provides the company with secure tenure over the Carpentaria gas discovery area, which includes the Carpentaria pilot project, and supports the continued appraisal of the stacked shales of the Velkerri Formation.
RL11 also underpins operation of the Carpentaria Gas Plant and the sale of appraisal gas under the company’s 10-year Gas Sales Agreement with the NT Government.
He told shareholders critically, RL11 means the company holds the Carpentaria gas discovery area in its own right. Whereas an exploration permit exists to search for petroleum, a retention licence exists to hold and evaluate a confirmed discovery that is not yet sanctioned for full-field commercial development.
“The grant of RL11 is a significant milestone for Beetaloo Energy. It secures our tenure over the Carpentaria gas discovery area, held in our own right while we evaluate the stacked shales of the Velkerri Formation and determine the optimal approach to full-field development,” Mr Underwood said.
“This gives our stakeholders confidence that gas can flow from the Carpentaria Gas Plant under our 10-year Gas Sales Agreement with the Northern Territory government, with the cash flow generated funding continued appraisal.
“This same security of tenure underpins our Beetaloo Digital initiative, allowing us to explore long-term offtake discussions with potential counterparties. We look forward to advancing Carpentaria along the pathway to a production licence.”
BTL was up 2.44% to 21.0¢. Mkt cap $309.1M.
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