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Horizon Oil Limited ( (AU:HZN) ) just unveiled an update.
Echelon Resources has announced that the Palm Valley joint venture in Australia’s Northern Territory has signed a long-term gas supply agreement with the Territory government, enabling the drilling of two new wells. The deal covers up to 10.5 petajoules of gas net to the Echelon group through to 2034 on a take-or-pay, inflation-indexed basis, with 7.4 petajoules allocated to Echelon and 3.2 petajoules to Cue Energy.
Following the agreement, the joint venture has reached final investment decision on the new wells, secured the Ensign 974 drilling rig and begun site preparations, with drilling expected to commence mid-year. The wells target the same productive formation as the PV-12 well drilled in 2022 and are expected to restore the Palm Valley plant to its 15 terajoules-per-day capacity, bolstering reliable local gas supply for the Northern Territory and underpinning long-term development of Echelon’s Amadeus Basin assets, although two Mereenie wells remain uncommitted pending a separate gas sales agreement.
More about Horizon Oil Limited
Echelon Resources Limited, trading as Echelon (ASX: ECH), is an Australasia-focused energy exploration and production company headquartered in Wellington, New Zealand. The group holds a diversified portfolio of wholly and partly owned onshore and offshore oil and gas assets across Australia, New Zealand and Indonesia, including an interest in ASX-listed Cue Energy Resources, and emphasises ethical, values-based operations and strong ESG standards.
Echelon leverages a team of experienced energy sector specialists and joint venture partnerships to explore and develop multiple assets in its portfolio. The company actively pursues value-accretive producing and exploration opportunities, using ongoing exploration programs to validate the prospectivity of its holdings while seeking additional growth across the region’s hydrocarbon basins.
YTD Price Performance: 29.53%
Average Trading Volume: 3,079,464
Technical Sentiment Signal: Buy
Current Market Cap: A$406.9M
See more insights into HZN stock on TipRanks’ Stock Analysis page.