Beetaloo Energy Australia has secured Retention Licence 11 (RL11) from the Northern Territory Department of Mining and Energy for rights over the Carpentaria unconventional shale gas fairway in Australia’s Northern Territory.
The 605km² licence was issued in accordance with section 34 of the Petroleum Act 1984 (NT), transitioning the acreage from Exploration Permit 187.
The retained area includes the Carpentaria gas discovery, containing a best estimate (2C) of 1,739 petajoules (PJ) of contingent resources and a best estimate (2U) of 3,542PJ of prospective resources.
According to the company, RL11 covers the Carpentaria Pilot Project and facilitates the ongoing appraisal of the Velkerri Formation’s stacked shales.
Beetaloo Energy noted that the licence provides secure tenure while the area’s development potential and commercial viability are assessed.
Under the Petroleum Act, RL11 may be renewed in successive five-year terms while commercial viability continues to be established.
The company’s wholly owned subsidiary, Imperial Oil & Gas, has accepted the grant of the licence.
The remaining part of Exploration Permit 187 continues to be held by the company as an exploration area.
The company also holds approvals required for the beneficial use or sale of appraisal gas from RL11.
Beetaloo Energy managing director Alex Underwood said: “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.
“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.”
An agreement for the sale and use of this gas was obtained from the Northern Land Council, representing the traditional Aboriginal owners under the Aboriginal Land Rights (Northern Territory) Act 1976.
Approval under section 57AAA of the Petroleum Act for the Beneficial Use of Gas, previously related to part of the Carpentaria Pilot Project, has also been extended to RL11.
A gas sales agreement with the Northern Territory Government underpins the company’s continued production and sale of appraisal gas at the Carpentaria Gas Plant.
Beetaloo Energy reports ownership of 28.9 million acres of exploration tenements within the McArthur Basin and Beetaloo Sub-basins in the Northern Territory.
In December last year, the company made a final investment decision (FID) to proceed with the Carpentaria Pilot Project.
This move came after obtaining the necessary regulatory clearances and support from key stakeholders.
As part of this process, the company finalised an agreement with the Northern Land Council, acting on behalf of the Mambaliya Rrumburriya Wuyaliya Aboriginal Land Trust, to allow for the sale of appraisal gas.
