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Echelon Resources Limited (ASX:ECH)

ALERT: Price-sensitive ASX Announcement for ECH
Current share price for ECH : $0.345 -0.055 (-13.75%)+
Announcement
Release
13 Apr 2026 9:56AM
Price at Release
$0.400
Full Release
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Summary
Cue Energy Resources Limited has executed a binding multi-year Gas Sales Agreement with the Northern Territory Government, contracting up to 3.2 PJ of gas through to 2034 under take-or-pay provisions with a fixed price indexed to inflation. This agreement facilitates the drilling of two new wells in the Palm Valley field, with production expected from the second half of 2026. The Palm Valley Joint Venture, including Central Petroleum and Echelon Resources, will supply up to 21 PJ of gas. This strategic move enhances Cue's contracted gas supply and secures long-term cash flow, replacing previous supply arrangements proposed with the Northern Territory’s Power and Water Corporation.
Key Points
  • Cue Energy Resources Limited signed a multi-year Gas Sales Agreement with the Northern Territory Government.
  • Up to 3.2 PJ (Cue share) of gas contracted through to 2034 with price indexed to inflation.
  • Final Investment Decision made to drill two new wells in the Palm Valley field.
  • The Palm Valley Joint Venture will supply up to 21 PJ of gas from 2H 2026 to 2034.
  • Drilling for the first well is scheduled to commence mid-year 2026.
  • Production from the new wells expected to begin in the second half of 2026.
  • The agreement increases Cue’s contracted gas position and provides pricing certainty.
  • Participants in the Palm Valley permit include Central Petroleum, Echelon Palm Valley, and Cue Palm Valley.
  • The GSA replaces previous arrangements outlined in the PWC Letter of Intent.
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.