Echelon Resources Limited (ASX:ECH)

Echelon Resources Limited announced that the Palm Valley 14 (PV-14) appraisal well in Northern Territory Operating Lease 3 has been completed as a gas producer and is being tied into the Palm Valley Production Station, with first gas expected before the end of October 2026. The well reached total depth of 2,942m measured depth on 14 September 2026 after being drilled at up to 75 degrees toward the northern flank of the Palm Valley Gas Field to target gas-bearing intervals and fractures in the Pacoota P1 Formation, intersecting gas flows over about 837m along the deviated wellbore. Drilling was extended to isolate formation water ingress in the toe using open hole packers, and an open hole flow test across 2,102.5mMD to 2,729mMD delivered about 3mmscf/d through a three-quarter-inch choke over 90 minutes with no water or oil recorded during the test, although the rate had not stabilised and was still increasing at a flowing tubing head pressure of 210psi. While trace water was later detected during completion operations, Echelon said this was likely clean-up water from underbalanced shutoff operations rather than leakage past the isolation packers. The current tied-in production estimate is 3-4TJ/d, with gas to be sold into the Northern Territory market under the gas supply agreement agreed with the Northern Territory Government in April 2026. Echelon also said the Ensign 974 rig will move on to drill PV-15, where additional success is expected to lift field output back near the processing facility capacity of around 14TJ/d gross and support delivery of at least 10PJ of gas gross, after which reserves and production guidance will be reviewed.