Echelon Resources’ Palm Valley Well Set for Production Before October 2026
Key Takeaways
- PV-14 reached 2,942mMD on 14 September 2026 and is being completed as a producer, with first gas expected before the end of October 2026.
- The open hole flow test delivered about 3mmscf/d (100% JV) with no water or oil recorded, and the rate was still rising slowly when the test ended.
- The tied-in rate is a current estimate of 3-4TJ/d, with updated flow data due once production is underway and clean up continues.
- Gas will be sold into the Northern Territory market under the April 2026 supply agreement with the NT Government, and Echelon holds 35% of OL3 against Central Petroleum's 50% operated stake.
- PV-15 is next, with success expected to lift field output toward 14 TJ/d and deliver at least 10 PJ (100% JV), while the reserves and guidance review waits until after that well.
PV-14 appraisal well set for production at Palm Valley, with first gas due before end of October 2026
Echelon Resources (ASX: ECH) advises the Palm Valley 14 (PV-14) appraisal well is being completed as a gas producer and will be tied into the Palm Valley Production Station. The well reached a total depth (TD) of 2,942mMD on 14 September 2026.
PV-14 intersected gas flows over approximately 837m measured along the deviated wellbore. First gas is expected before the end of October 2026, which would move the well from drilling to production within weeks.
Andrew Jefferies, Echelon CEO
“Palm Valley has delivered again… PV-14 means local gas for the Territory, quickly hooked up, keeping the lights on, businesses running and barramundi broiled.”
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What did the flow test and well design show?
Open hole flow test
An open hole flow test measures how much gas a well delivers before it is connected to a pipeline. The gas rate had not stabilised and, by the end of the test period, was still increasing slowly.
| Metric | Result |
|---|---|
| Test interval | **2,102.5mMD** to **2,729mMD** (**1,904m** to **2,041m** TVD) |
| Choke and duration | ¾-inch choke, **90 minutes** |
| Gas rate | Approximately **3mmscf/d** (100% JV) |
| Flowing tubing head pressure | **210psi** |
| Fluids | No water or oil recorded |
| Current estimate for tied-in rate | **3-4TJ/d** |
The tied-in figure is a current estimate. Echelon said updated flow data will be determined once production is underway and clean up continues.
Water isolation
Drilling operations were extended to isolate formation water ingress in the toe of the well using open hole packers. After some initial running issues, two open hole packers were run and set successfully, with flow testing indicating shutoff.
Trace water has since been detected during completion operations. Echelon inferred this is clean up of water produced during underbalanced shutoff operations, rather than water from behind the isolation packers.
Key drilling details:
- Deviated at up to 75 degrees
- Directed towards the northern flank of the Palm Valley Gas Field
- Targeted gas bearing intervals and fractures within the Pacoota P1 Formation
- Located in Northern Territory Operating Lease 3 (OL3)
- Drilled using the Ensign 974 drilling rig
What does this mean for gas, drilling and ownership?
An appraisal well tests how much gas a reservoir can deliver and helps confirm what lies beneath. Drilling at an angle, as PV-14 was, lets a single well run through a longer section of gas-bearing rock than a vertical hole would.
Flow testing matters because it gives the first measured gas rate. A rate recorded in an open hole test can differ from the rate once the well is tied in, which is why the 3mmscf/d test result and the 3-4TJ/d tied-in estimate are quoted separately.
Gas from the well will be sold into the Northern Territory gas market under a gas supply agreement negotiated with the Northern Territory Government in April 2026. For investors, that points to a defined local route for the gas.
Participants in OL3 are:
- Central Petroleum (Operator, 50%)
- Echelon Palm Valley Pty Ltd (35%)
- Cue Palm Valley Pty Ltd (15%)
The 3mmscf/d rate is quoted on a 100% JV basis, not Echelon’s net share.
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What comes next with PV-15 and the reserves review?
The Ensign 974 rig is now preparing to complete PV-14 before moving to drill the next well in the programme, Palm Valley 15 (PV-15).
Additional success at the soon to be drilled PV-15 well is expected to return field production to near processing facility capacity of approximately 14 TJ/d (100% JV) and deliver at least 10 PJ of gas (100% JV).
A review of the campaign’s impact on reserves and production guidance will be conducted at the end of the campaign, once PV-15 has been drilled. No changes to reserves or guidance have been announced.
The near-term catalysts for investors to watch, in order:
- First gas from PV-14, expected before the end of October 2026
- Updated flow data once production is underway and clean up continues
- The PV-15 drilling result
- The review of reserves and production guidance
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