• Echelon's Mereenie and Palm Valley JVs agree terms with NT's Power and Water Corporation for gas supply through 2034
• Four new development wells to be drilled, adding up to 13.3 PJ of additional gas supply (net to Echelon)
• Agreement expected to significantly increase conventional gas output from the Amadeus Basin and help address supply constraints in the NT

Echelon Resources Limited (Echelon; ASX: ECH) has advised that the Mereenie and Palm Valley Joint Ventures (JVs) have agreed non-binding, conditional terms with the Northern Territory's Power and Water Corporation (PWC) for the sale of gas from the Mereenie and Palm Valley fields through to the end of 2034. The non-binding terms contemplate firm supply of up to 19.1 PJ (net to Echelon) from existing production and enable the drilling of four new development wells (two at Mereenie and two at Palm Valley) adding up to 13.3 PJ of additional supply (net to Echelon). Subject to final documentation, internal approvals, regulatory approvals and acceptable rig contracts, the arrangement is expected to significantly increase conventional gas output from the Amadeus Basin and help address current supply constraints that are threatening power system reliability in the Northern Territory. Echelon's CEO, Andrew Jefferies, says 'this is exciting, near-term growth for Echelon and the Mereenie and Palm Valley JVs. By drilling four new wells, we're adding even more locally produced, reliable energy to the Territory at a time it's needed most. Gas from Mereenie and Palm Valley has underpinned the NT power system for the past 39 years. This agreement positions us to do even more, and to do it quickly. Gas is the keystone of the Northern Territory's energy system; and these wells will keep Ben in Barrow Creek baking bush berry pie with our clean burning gas. This is a real win-win for the Joint Venture, our shareholders, our hard-working employees, the local stakeholders, the Territory Government, and residents. What's not to love!'