Macallum New Energy Limited (ASX:MNE) has appointed Aztech Well Construction Pty Ltd to commence well planning and design studies for three possible exploration wells — Barberton Terrace Deep, Gadee East and Aberfeldy — within permit EP 494, which is 100% held by the company, while simultaneously initiating key regulatory approval processes required to drill the wells.

Key Points

  • Aztech Well Construction appointed to conduct well planning and design studies for Barberton Terrace Deep, Gadee East and Aberfeldy prospects within EP 494 (MNE 100%)
  • Regulatory approval processes initiated, including an Environmental Plan, Safety Management Systems and land access consultations
  • Well planning runs in parallel with an ongoing farm-out process, with final well target selection to follow a binding farm-out agreement targeted for Q1 2027
  • One or more exploration wells targeted for delivery in H2 2027, with a final investment decision expected in Q1 2027
  • Prospective Resources independently estimated by Molyneux Advisors Pty Ltd; Barberton Terrace Deep 2U estimate is 1,090 PJ sales gas; Gadee East 2U estimate is 150 PJ sales gas

Aztech Well Construction Appointment and Regulatory Process

Macallum New Energy disclosed that Aztech Well Construction Pty Ltd has been engaged to deliver well engineering and project management services for three exploration well locations within EP 494. The scope of work covers the Barberton Terrace Deep, Gadee East and Aberfeldy prospects. Concurrently, the company has commenced the regulatory approval process, including development of a drilling Environmental Plan, Safety Management Systems and land access consultations. The filing states the awarded scope sits on the critical path for the company to drill one or more wells in the second half of 2027.

Prospect Resource Estimates Across EP 494

Prospective Resources for all three prospects were independently estimated by Molyneux Advisors Pty Ltd in accordance with SPE-PRMS (2018) using probabilistic methods. Barberton Terrace Deep, described in the filing as possibly the largest undrilled Permian gas prospect in the Perth Basin, carries a 2U Prospective Resource of 1,090 PJ sales gas and 4.90 MMbbl condensate, with a geological chance of discovery of 29%. Gadee East records a 2U estimate of 150 PJ sales gas and 1.13 MMbbl condensate, with a 40% chance of geological discovery. All volumes are unrisked, recoverable and 100% net to MNE.

Farm-Out Process and Drilling Timeline

According to the filing, the well planning work is being progressed in parallel with an ongoing farm-out process. The company disclosed that multiple top-tier parties are currently active in the farm-out process, which is expected to run until the end of 2026, with the possibility of extension if additional demand arises. Final selection of well targets is to be made after signing a binding farm-out agreement, targeted for Q1 2027. Completion of the planning work is intended to allow the company and any potential joint venture partner to reach a final investment decision on one or more wells in Q1 2027.