Why Macallum New Energy (ASX:MNE) is seeking a partner to drill a Perth Basin gas target

Sonal Goyal

04 November 2026 10:09 PM AEDT

Why Macallum New Energy (ASX:MNE) is seeking a partner to drill a Perth Basin gas target

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Key Highlights

• Macallum wants a joint venture partner to drill its main Perth Basin gas target.

• The Barberton Terrace Deep prospect is the key target.

• A farmout would share funding and risk.

• Exploration wells often fail, and any gas find would need appraisal and infrastructure.

Macallum New Energy (ASX:MNE) is looking for a joint venture partner because it plans to drill its main Perth Basin gas target with a partner rather than alone. The explorer holds permits in Western Australia's onshore Northern Perth Basin and is planning a first exploration well in the second half of 2027.

An oil and gas explorer in the Perth Basin

Macallum New Energy (ASX:MNE) is an ordinary-share company that describes its Business as oil and gas exploration. It listed on the ASX on 25 February 2026 after an initial public offering of 36,889,082 shares at A$0.20, raising about A$7.4 million before costs.

It holds 100 per cent of permits EP-494, about 2,577 square kilometres, and EP-511, about 73 square kilometres. It also has three permit applications that remain currently ungranted.

The Barberton Terrace Deep prospect

The company's flagship target is Barberton Terrace Deep, a gas prospect in a three-way structural trap covering up to about 152 square kilometres. Its best estimate of prospective resource is 1.28 trillion cubic feet of gas.

Across EP-494, the company estimates 1.98 trillion cubic feet of gas and 34 million barrels of oil. These are unrisked prospective resources, meaning they are undiscovered.

A newly identified oil prospect, Aberfeldy, received a maiden estimate on 3 August 2026 of 34 million barrels of oil, with 34 billion cubic feet of gas in an oil-bearing scenario.

The company describes EP-494 as hosting possibly the largest undrilled Kingia target in the Perth Basin. Fast-track Barberton 3D data in July 2026 indicated a valid structural closure at the Gadee lead.

What the numbers show

For the year to 30 June 2026 the company reported a loss after tax of A$5,880,540, against A$1,374,681 a year earlier. Exploration expenses rose to A$3,876,455 from A$519,814 in a year of heavy seismic work.

That included a 117 square kilometre 3D survey at Barberton, completed in May 2026, and about 68 kilometres of 2D seismic over the Condor area, completed in June 2026.

Cash stood at A$1,823,712 at 30 June 2026, and operating cash outflow for the year was A$4,860,071. Exploration and evaluation Assets were A$8,019,100.

The directors disclosed a material uncertainty about the company's ability to continue as a going concern. They said it depends on raising more Equity and deferring discretionary exploration spending.

Farmout, funding and timetable

The September 2026 presentation sets out the plan. It lists a farmout campaign from October 2026, well planning and a final Investment decision on the first well in the first quarter of 2027, and procurement of long-lead items in the second quarter.

A first exploration well is targeted for the second half of 2027. Annual Report wording refers to late 2027 in one place.

The presentation of 14 September 2026 recorded 140,198,347 shares on issue. On 18 September 2026 it announced that 13,030,866 Options exercisable at A$0.30 and expiring on 31 October 2029 were released from escrow.

The presentation also cites recent Perth Basin transactions averaging about A$2.74 million per billion cubic feet. Those targets had already drilled wells, so they are not comparable with an undrilled prospect.

Risks and watch points

Exploration wells frequently fail, and even a gas discovery would need appraisal, approvals and infrastructure before any revenue. The presentation itself describes an investment in the company as speculative.

A farmout normally means the partner funds a share of the well in return for an interest in the permit, so success would be shared. Failure to find a partner would leave the company needing to raise equity at whatever price the market offers, or to slow its work.

Readers can follow the prospect resource update slated for September 2026, any farmout announcement, the Annual General Meeting and the next quarterly cash report.

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