• 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 the prolific PV-12 well
• New wells expected to restore Palm Valley production plant to 15 TJ per day capacity

Echelon Resources Limited (Echelon; ASX: ECH) has announced that the 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. In the absence of an agreement on Mereenie gas sales, the two Mereenie permit wells remain uncommitted and option wells under the rig contract. Echelon's CEO, Andrew Jefferies, says 'This is an excellent outcome for our Palm Valley JV, and is about providing dependable local Amadeus gas doing everyday jobs - keeping the power supply reliable and supporting daily life in the Northern Territory, right down to Vanessa in Darwin simmering the Gubinge relish. The agreement underpins investment in new wells and supports long-term, responsible development of our Amadeus Basin assets'.