Macallum New Energy completed key 3D and 2D seismic surveys in Western Australia’s Perth Basin, setting the stage for prospect maturation and potential drilling in 2027 while maintaining a strong cash position.
- Barberton 3D and Condor 2D seismic surveys completed
- Seismic data processing underway with results due September 2026
- New prospects and leads identified within EP-494
- Company monitoring hydrogen and helium potential under new legislation
- Corporate updates include UK capital adviser appointment and board role changes
Seismic Milestones Propel Exploration Forward
Macallum New Energy (ASX:MNE) marked a pivotal quarter with the successful completion of its Barberton 3D seismic survey over EP-494 and the Condor 2D seismic survey spanning EP-511 and EP-494 in Western Australia’s North Perth Basin. These programs, completed on schedule, generated a combined 185 km of seismic data, significantly enhancing the company’s subsurface imaging capabilities. Processing of this data, contracted to Velseis Processing Pty Ltd, is underway with final deliverables expected in the September quarter.
The Barberton 3D survey, covering 117 km², targeted the Yarra and Gadee Jurassic leads at approximately 2,500 metres depth; prospective conventional gas plays within the Yarragadee Formation. Notably, the survey employed GeoPulse low-impact seismic technology, a first in Western Australia, which minimized environmental disturbance by eliminating vegetation clearing and reducing ground impact. Early “fast-track” data confirms the survey met its objective, revealing strong seismic reflectors and validating a structural closure at the Gadee lead, while ongoing interpretation at the Yarra lead continues.
Expanding Prospectivity and Portfolio
Alongside seismic advances, Macallum identified a new prospect, Aberfeldy, and three leads; Bowmore, Cardhu, and Barberton East; within EP-494. These were uncovered through evaluation of newly available 2D seismic data, broadening the company’s exploration targets for both oil and gas. The company is currently assessing prospective resources and geological chance of success, with results anticipated in the third quarter of 2026. Additional seismic acquisition may be needed to fully mature these leads toward drill-ready status.
Macallum is also positioning itself amid evolving regulatory landscapes. Following the Western Australian government’s Petroleum Legislation Amendment Act (2024), which now permits exploration for naturally occurring hydrogen and helium within petroleum permits, the company plans to apply for these gases to be added to EP-494. While hydrocarbons remain the primary focus, Macallum is monitoring developments in these emerging sectors as potential secondary objectives.
Corporate Moves and Financial Position
On the corporate front, Macallum appointed UK-based Greenwood Capital Partners Limited as its equity capital markets adviser to enhance engagement with investors in the UK and Europe. The company issued 375,000 shares to Greenwood as consideration for advisory services. Board changes also took effect, with Rance Dorrington shifting from Executive to Non-Executive Director, and Trinity Nofal moving from Non-Executive to Executive Director, reflecting a strategic leadership realignment.
Audit responsibilities transitioned to Stannards Audit Pty Ltd following a strategic alliance with the previous auditor, Connect National Audit Pty Ltd. This change awaits shareholder ratification at the upcoming Annual General Meeting.
Financially, Macallum ended the quarter with $1.82 million in cash, having spent $3.14 million primarily on exploration activities including seismic acquisition, data processing, and associated operational costs. The company reported no production or development activities during the period. Elevated cash outflows during the seismic acquisition phase are expected to ease as focus shifts to data processing and interpretation in the coming quarter. Macallum continues to evaluate funding options to support ongoing exploration.
Looking Ahead to Drilling and Data Interpretation
With seismic processing on track for completion in September, Macallum aims to leverage the enhanced subsurface imagery to refine drilling targets and advance exploration well planning, targeting potential drilling in the second half of 2027. The integration of the Barberton 3D and Condor 2D datasets promises to deepen understanding of the structural framework and prospect geometry across its permits, underpinning the maturation of its portfolio.
As the company navigates a tightening domestic gas market and emerging opportunities in hydrogen and helium, the coming months will be critical in translating seismic data into actionable drilling decisions and in securing the necessary funding to sustain its exploration momentum.
Bottom Line?
Macallum’s seismic achievements lay a technical foundation for drilling decisions, but funding and final data interpretation will be key to unlocking value.
Questions in the middle?
- How will final seismic interpretations reshape Macallum’s drilling priorities in EP-494 and EP-511?
- What funding strategies will Macallum pursue to extend its cash runway beyond the next quarter?
- To what extent will hydrogen and helium exploration influence Macallum’s long-term portfolio strategy?