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Echelon Resources Limited (ASX:ECH)

ALERT: Price-sensitive ASX Announcement for ECH
Current share price for ECH : $0.335 -0.02 (-5.63%)+
Announcement
Release
8 Oct 2026 1:58PM
Price at Release
$0.355
Full Release
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Summary
Central Petroleum Limited announced that Palm Valley 14 (PV14), located in OL3 in the Northern Territory’s Amadeus Basin, has been successfully drilled and is being completed as a gas producer for the Palm Valley joint venture comprising Central Petroleum (50%), Echelon Resources Limited (ASX: ECH) (35%) and Cue Energy Resources Limited (ASX: CUE) (15%). PV14 is a conventional deviated well targeting the Pacoota P1 Sandstone, with 200m gross pay and 45m net pay, drilled to 2,942m measured depth and tested over the interval 2,102m to 2,729m MD after packers were set to isolate anticipated water ingress points. A 90-minute flow test through a ¾-inch choke produced an estimated final gas rate of about 3.2 TJ/d on a 100% joint venture basis, with no water or oil recovered during the test, although later vacuum flows indicated some possible water production that may either reflect residual standing water likely to clean up over time, similar to PV12, or possible water ingress requiring further isolation and potentially affecting production. Central said the short-duration rig test was insufficient to determine stable online rates, but extrapolation suggests initial production of about 3–4 TJ/d subject to gathering system backpressure and uncertainty around future clean-up or water ingress. The well is expected to be tied into the Palm Valley production facility and commissioned before the end of October, after which drilling of PV15 will begin; together PV14 and PV15 are intended to restore Palm Valley plant sales capacity to about 14 TJ/d and deliver at least 10 PJ of gas over their operating lives, with PV15 targeting the southern flank of the field and seen as an opportunity to improve outcomes relative to PV14’s below-target initial result.
Key Points
  • PV14 has been successfully drilled and is being completed as a gas producer.
  • PV14 is part of the Palm Valley joint venture between Central Petroleum, Echelon Resources Limited and Cue Energy Resources Limited.
  • Echelon Resources Limited holds a 35% interest in the joint venture.
  • The well targeted the Pacoota P1 Sandstone in OL3 in the Northern Territory’s Amadeus Basin.
  • PV14 was drilled to a total depth of 2,942m measured depth, equivalent to 2,096m true vertical depth.
  • The Pacoota P1 Sandstone interval has 200m gross pay and 45m net pay.
  • A 90-minute flow test measured an estimated final gas rate of approximately 3.2 TJ/d on a 100% JV basis.
  • No water or oil was recovered during the initial flow test.
  • Subsequent vacuum flows indicated some evidence of water production.
  • The water may be residual standing water that could clean up over time or may indicate water ingress requiring further isolation.
  • Central estimates PV14 could initially produce around 3 to 4 TJ/d under typical gathering system backpressure.
  • The well is expected to be tied into the Palm Valley production facility and commissioned before the end of October 2026.
  • PV15 drilling is planned to commence after PV14 completion activities are finished.
  • PV14 and PV15 together are targeting restoration of Palm Valley plant sales capacity to about 14 TJ/d.
  • The two-well campaign is intended to deliver at least 10 PJ of gas over the wells’ operating lives.
  • Central’s CEO said PV14’s initial test result was below target and below recent wells such as PV12 and PV13.
  • PV15 will target the southern flank of the Palm Valley anticline and is positioned closer to the field crest and further up-dip from possible water sources.
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.