Beetaloo Energy has secured key regulatory approvals and approved the Final Investment Decision for its Carpentaria Pilot Project, setting the stage for first gas sales from EP187 in late 2026.
- Federal and NT government approvals secured including Traditional Owner consent
- Final Investment Decision (FID) approved for Carpentaria Pilot Project
- Carpentaria-5H well delivers strong flow rates and enhanced permeability
- Construction of Carpentaria Gas Plant underway with commissioning planned for 2026
- Liquidity stands at $24.8 million with $30 million additional funding expected post-FID
Regulatory Milestones Pave Way for Commercialisation
Beetaloo Energy Australia Limited has taken a decisive step forward in its journey to commercial gas production with a series of critical regulatory approvals secured during the December 2025 quarter. The company obtained Federal Ministerial approval recognising Traditional Owner consent for the sale of appraisal gas, followed swiftly by the Northern Territory Government’s approval of the Beneficial Use of Gas application. These endorsements not only affirm strong community and governmental support but also establish a clear regulatory pathway for gas sales from the EP187 permit area.
Final Investment Decision Signals Confidence
Buoyed by these approvals and robust well performance, Beetaloo Energy’s Board approved the Final Investment Decision (FID) for the Carpentaria Pilot Project. This milestone signals the company’s commitment to advancing from appraisal to pilot production, with first gas sales anticipated in late 2026. The FID unlocks access to an additional $30 million in funding from the Macquarie Midstream Infrastructure Facility, earmarked to support the construction and installation of the Carpentaria Gas Plant and associated infrastructure.
Strong Well Performance Underpins Project Economics
The Carpentaria-5H well has been a standout performer, achieving one of the highest flow rates recorded in the Beetaloo Basin during a 30-day clean-up flow test. Averaging 7.1 terajoules per day with a low decline rate, the well demonstrated enhanced permeability and an effective fracture network, suggesting improved gas recovery potential. Independent assessments estimate recoverable 2C resources of approximately 10 petajoules per well location in the area, reinforcing the project’s promising economic outlook.
Construction Progress and Next Steps
Early civil works for the Carpentaria Gas Plant commenced in October 2025 and were completed by January 2026 without any safety or environmental incidents. The next phases include piling installation starting in February and the transport of refurbished gas compressor equipment to site in April. Gathering pipelines to connect existing wells to the compression facilities are scheduled for installation in the second quarter, with early commissioning activities and gas sales expected in the third quarter of 2026.
Financial Position and Outlook
Beetaloo Energy ended the quarter with total liquidity of $24.8 million, comprising $18 million in cash and $6.8 million of undrawn funding. The company did not draw on its $30 million R&D facility during the period, reflecting sufficient cash reserves. With the FID achieved and regulatory approvals in place, the company is well positioned to draw down the additional $30 million Midstream Infrastructure Facility to fund ongoing development. Capitalised expenditure on the Carpentaria Pilot Project during the quarter was $6.46 million, with no production or development expenditure recorded.
As Beetaloo Energy advances toward pilot production, it continues to engage closely with Traditional Owners and government authorities, underscoring its commitment to responsible development and community partnership.
Bottom Line?
With approvals secured and construction underway, Beetaloo Energy is poised to transform its Beetaloo Basin assets into commercial gas production by late 2026.
Questions in the middle?
- Will the strong flow rates from Carpentaria-5H translate into sustained long-term production?
- How will Beetaloo Energy manage potential environmental and community concerns as pilot production scales up?
- What impact will the additional $30 million funding have on accelerating project timelines and expanding drilling activities?