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New Zealand Oil & Gas Limited ( (AU:ECH) ) has shared an announcement.
Echelon Resources Limited said the Palm Valley Joint Venture has signed a gas supply agreement with the Northern Territory of Australia that will enable drilling of two new wells and secure up to 10.5 petajoules of gas net to the Echelon group through 2034 on a take-or-pay, inflation-indexed basis. The joint venture has taken final investment decision on the wells, contracted the Ensign 974 rig and begun site preparation, with drilling expected from mid-year targeting the same formation as the high-performing PV-12 well to restore the Palm Valley plant to its 15 terajoules-per-day capacity.
The deal underpins new investment in Echelon’s Amadeus Basin assets and bolsters reliable local gas supply for the Northern Territory’s power system and everyday energy needs, although two Mereenie permit wells remain uncommitted amid the absence of a gas sales agreement. Echelon, which holds 35% of the Palm Valley permit alongside operator Central Petroleum and Cue Energy, positions this agreement as reinforcing long-term, responsible development of its regional gas portfolio and supporting its broader growth ambitions in Australasia’s energy markets.
More about New Zealand Oil & Gas Limited
Echelon Resources Limited, trading as Echelon (ASX: ECH), is an Australasia-focused energy commodity exploration and production company headquartered in Wellington, New Zealand. Its portfolio spans wholly and partly owned onshore and offshore oil and gas assets in Australia, New Zealand and Indonesia, including interests held via its roughly 50% stake in Cue Energy Resources, with a stated emphasis on ethical, values-based operations and strong ESG standards.
The company and its partners run multiple exploration and development programs across this portfolio, aiming to validate the prospectivity of their assets while seeking additional value-accretive producing and exploration opportunities. Echelon leverages an experienced energy-sector team and joint venture relationships to expand and optimise its regional oil and gas footprint.
YTD Price Performance: 20.85%
Average Trading Volume: 29,150
Technical Sentiment Signal: Buy
Current Market Cap: A$89.58M
See more insights into ECH stock on TipRanks’ Stock Analysis page.