• Echelon signs non-binding, conditional terms with NT's Power and Water Corporation for gas supply through 2034
• Enables drilling of 4 new development wells, adding up to 13.3 PJ of additional gas supply (net to Echelon)
• Arrangement expected to significantly increase conventional gas output from Amadeus Basin and address supply constraints in 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, as the new wells will keep adding 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, and this agreement positions the company to do even more, and to do it quickly.

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.