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Echelon Resources Limited (ASX:ECH)

ALERT: Price-sensitive ASX Announcement for ECH
Current share price for ECH : $0.355 -0.045 (-11.25%)+
Announcement
Release
13 Apr 2026 9:44AM
Price at Release
$0.400
Full Release
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Summary
Central Petroleum Limited has entered into a multi-year Gas Sales Agreement with the Northern Territory Government, which will fund the development of two new wells at Palm Valley, expected to significantly boost gas production capacity. The agreement covers the supply of up to 21 PJ of gas until 2034, with drilling scheduled to start in mid-2026. The company has secured an expanded loan facility to cover drilling costs, replacing a previous agreement with the Power and Water Corporation. CEO Leon Devaney emphasized the potential for strong returns and increased free cash flows from the project.
Key Points
  • Central Petroleum Limited (ASX: CTP) has executed a binding multi-year Gas Sales Agreement (GSA) with the Northern Territory Government.
  • The GSA will underwrite investment in two new wells at Palm Valley.
  • The agreement will supply up to 21 PJ of gas, with Central's share being 10.5 PJ, until the end of 2034.
  • Two new wells are planned to be drilled at Palm Valley, with drilling set to commence by mid-2026.
  • The new wells are expected to initially increase Central's gas production capacity by approximately 40%.
  • An increased loan facility is available, which Central expects to use for Palm Valley drilling and completion costs, totaling approximately $26 million.
  • The GSA replaces a previously announced Letter of Intent with the Northern Territory's Power and Water Corporation.
  • Central's CEO and Managing Director, Leon Devaney, highlighted the significance of the GSA and its potential to deliver strong returns.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.