Beetaloo Energy has completed the largest hydraulic fracture stimulation in Australian history at its Carpentaria-5H well, advancing its pilot project and gas plant construction amid pending regulatory approvals.
- Record 2,955m hydraulic fracture stimulation at Carpentaria-5H
- IP30 flow testing delayed but expected to start early November
- Final Investment Decision pending Ministerial approvals
- Early civil works commenced for Carpentaria Gas Plant
- Liquidity stands at $32.6 million with $30 million more post-FID
A Historic Hydraulic Fracture
Beetaloo Energy Australia Limited has marked a significant milestone in its Northern Territory operations with the successful hydraulic fracture stimulation of the Carpentaria-5H well. Completed over a nearly 3-kilometre horizontal section within the Velkerri Formation's B Shale, this operation represents the largest fracture stimulation ever conducted on a petroleum well in Australia. Executed by Halliburton with 67 stages and approximately 11,000 tonnes of proppant, the stimulation underscores the company's technical prowess and operational scale in the Beetaloo Basin.
Awaiting Flow Testing and Data Insights
Following the stimulation, Carpentaria-5H entered a soak period before the commencement of the critical IP30 flow test, which is now expected to begin in early November due to delays in the arrival of flow testing equipment. Initial flowback results have been encouraging, suggesting a large and effective stimulated rock volume. This flow test will provide essential data to assess the well's production potential and inform the next phases of development.
Progress Toward Final Investment Decision
Beetaloo Energy is advancing toward a Final Investment Decision (FID) for the Carpentaria Pilot Project, contingent on receiving final Ministerial approvals, including Traditional Owner consent and government clearance for the sale of appraisal gas. In preparation, early civil works for the Carpentaria Gas Plant have commenced, with Wasco Australia and local contractors engaged to support construction. The company is well capitalized, holding $32.6 million in liquidity and anticipating an additional $30 million in funding from Macquarie Bank upon FID.
Regulatory and Community Engagement
Significant progress has been made on regulatory fronts, with Traditional Owners consenting to the sale of appraisal gas and approvals nearing completion from the Northern Land Council and Federal Minister. These steps are critical to unlocking the beneficial use of test gas, a prerequisite for the pilot project's commercial viability. The company’s engagement with Indigenous stakeholders and adherence to environmental management plans reflect a commitment to responsible development in the region.
Sector Context and Financial Position
Beetaloo Energy’s developments occur amid a busy period for the Northern Territory petroleum sector, with peers like Tamboran Resources and Santos also advancing projects and securing approvals. Financially, Beetaloo reported no production or development expenditure during the quarter but drew down $10.1 million under its R&D facility to support the pilot project. The company’s net cash position remains slightly negative due to debt facilities but is poised for improvement post-FID funding drawdowns.
Bottom Line?
With record-breaking stimulation behind it and key approvals imminent, Beetaloo Energy stands on the cusp of a transformative phase; flow test results and regulatory green lights will be pivotal.
Questions in the middle?
- Will the IP30 flow testing confirm commercial production rates for Carpentaria-5H?
- How soon will final Ministerial approvals and Traditional Owner consents be secured to trigger FID?
- What impact will the pilot project have on Beetaloo Energy’s valuation and regional gas supply dynamics?