• Echelon's Palm Valley Joint Venture signs gas supply agreement with Northern Territory of Australia
• Agreement enables drilling of two new wells targeting the same formation as prolific PV-12 well
• Wells expected to return Palm Valley production plant to 15 TJ per day capacity

Echelon Resources Limited (ASX: ECH) has announced that its Palm Valley Joint Venture (JV) has signed a gas supply agreement with the Northern Territory of Australia. The agreement enables the JV to drill two new wells and is for the supply of up to 10.5 PJ net to the Echelon group (7.4 PJ to Echelon and 3.2 PJ to Cue), through to the end of 2034, with take or pay obligations at an inflation indexed price. The JV has also passed its final investment decision for the wells and has contracted the Ensign 974 drilling rig. Preparatory site work has commenced with drilling anticipated from mid-year. The two wells target the same formation as the prolific PV-12 well drilled in 2022, and it is expected that they will return the Palm Valley production plant to its 15 TJ per day capacity. Echelon's CEO, Andrew Jefferies, stated that this is an excellent outcome for the Palm Valley JV, providing dependable local Amadeus gas to support the power supply and daily life in the Northern Territory.