Top End Energy's EP 144: A New Frontier for Unconventional Gas
TEE (TEE) Share Update September 2024 Wednesday 18th
Top End Energy Discovers Organic-Rich Source Rocks in EP 144
Top End Energy Limited (ASX:TEE) has announced the discovery of organic-rich source rocks in its recently acquired Exploration Permit (EP) 144, located in the South Nicholson Basin area of the Northern Territory, Australia.
Instant Summary:
- Organic-rich shales confirmed in EP 144 with up to 3.1wt% TOC.
- Preliminary analysis consistent with nearby Lawn Hill shale intervals.
- Ongoing analyses to determine thermal maturity of organic-rich intervals.
- Geophysical wireline logging planned for further data collection.
- Deep stratigraphic well planning to test deeper source rock intervals.
Discovery of Organic-Rich Source Rocks
Top End Energy Limited (Top End or the Company) has reported promising preliminary results from its recently acquired Exploration Permit (EP) 144, located in the South Nicholson Basin area of the Northern Territory (NT) of Australia. Recent drilling on overlapping mineral tenure has confirmed the presence of organic-rich shales with up to 3.1wt% Total Organic Carbon (TOC), sampled from whole core captured during Encounter Resources’ recent drilling campaign.
The data is consistent with the Lawn Hill shale interval intersected at the nearby NDI Carrara-1 stratigraphic well, where TOC was sampled up to 3.2 wt%. Ongoing organic petrographic analyses are being conducted to determine the thermal maturity of these organic-rich intervals. Additionally, geophysical wireline logging of Encounter’s wells is planned ahead of resampling whole core intervals.
Strategic Location and Potential
EP 144, acquired as part of a transaction with Minerals Australia Pty Ltd and Jacaranda Minerals Limited, represents highly prospective underexplored acreage in a proven hydrocarbon region. The permit is strategically located near the Northern Gas Pipeline, providing access to Mount Isa and the East Coast gas market. The area also has significant existing hard rock exploration and mining activity, offering potential opportunities for additional data sources, exploration collaboration, and offtake counterparties.
Next Steps and Future Plans
Building on the recent data, Top End Energy plans to undertake several near-term activities to further delineate and better understand the unconventional resource potential on the Permit. These activities include further organic petrographic analyses, geophysical wireline logging of Encounter’s drill holes, well to seismic correlation of key organic-rich sequences, updated seismic interpretation, and the drilling of a deep stratigraphic well to test multiple source rock intervals.
Commenting on the implications for the potential of the EP 144 acreage, outgoing Managing Director Oliver Oxenbridge said, 'The fortuitous timing and location of Encounter Resources’ recent drilling campaign is a huge advantage for Top End. The preliminary results are very encouraging and contribute to the team’s increasing confidence in the unconventional gas potential of EP 144 and the broader South Nicholson Basin.'
The discovery of organic-rich source rocks in EP 144 is a significant development for Top End Energy. This finding enhances the company's prospects for unconventional gas exploration in the South Nicholson Basin. The presence of these shales could attract further investment and boost the company's stock price as investors gain confidence in the potential for future gas production. Additionally, the strategic location of EP 144 near the Northern Gas Pipeline provides a logistical advantage for future gas transportation and market access.
Investor Reaction:
Analysts are likely to react positively to this announcement, recognizing the potential for significant unconventional gas resources in EP 144. The preliminary results align with existing data from nearby wells, reinforcing the credibility of the findings. However, investors may adopt a cautious approach until further analyses and drilling activities confirm the full extent of the resource potential.
Conclusion:
Investors should keep a close eye on Top End Energy's ongoing exploration activities in EP 144. The discovery of organic-rich source rocks is a promising development that could lead to substantial unconventional gas production in the future. As the company continues to de-risk the resource opportunity, further updates and analyses will be crucial in assessing the long-term potential of this project.