Beetaloo Energy has delivered a strong, consistent 30-day production test from its flagship Carpentaria-5H (C-5H) shale gas well, marking another de-risking milestone as it closes in on commercial gas production.
While the well hit a peak flow of more than 14 terajoules (TJ) per day, its ability to sustain production provides the strongest evidence yet it can support commercial development.
The well delivered an average production rate of 6.9TJ per day over its first 30 days of testing (IP30) before finishing with a final flow rate of 6.7TJ per day at the end of the test.
Crucially, that final flow rate was slightly higher than the 6.3TJ per day recorded at the end of a previous 30-day clean-up test, despite the latest test running on a smaller choke.
Beetaloo says maintaining a sustained production profile throughout the test has given it greater confidence the well can deliver consistently over the long term.
Water production continued to decline as excess water and stimulation fluids were flushed from the reservoir.
The company says the longer clean-up reflects C-5H 's bigger completion, featuring a longer lateral well and roughly double the stimulation intensity of Carpentaria-2H and Carpentaria-3H.
For a shale well, this kind of stable performance after such an extensive completion program is a strong indicator of long-term development success. It supports Beetaloo's previously disclosed estimate that about 10 petajoules of gas could ultimately be recovered from C-5H.
This milestone is important because it shows the reservoir can consistently deliver the production performance needed for commercial development, clearing another major hurdle towards first gas from the company's three-well pilot project.
The C-5H well is a technical standout. It was designed as a commercial development lookalike while targeting the prolific Velkerri B shale. The well was stimulated across 67 stages, using 11,000 tonnes of proppant along a 2.955-kilometre stimulated horizontal section.
Beetaloo Energy managing director Alex Underwood said: "The well has now delivered stable production performance across an extended testing period, providing further confidence in the quality of the Velkerri Shale at Carpentaria. Importantly, C-5H continued to demonstrate strong and consistent gas rates during clean-up, highlighting the quality of the reservoir and supporting our previously estimated recoverable gas resource at the well location."
Management says the latest production data will help optimise future well design and field development as the company moves towards larger-scale gas production.
C-5H has now been shut in and will be connected to the Carpentaria gas plant, which is under construction. It will join Carpentaria-2H and Carpentaria-3H as the third well feeding Beetaloo's pilot project.
Processed gas will enter the nearby McArthur River pipeline, giving Beetaloo a direct route into the Northern Territory gas market. First gas sales from the pilot project remain on track for the fourth quarter of 2026, following commissioning of the gas plant.
The timing could hardly be better. Australia is scrambling to secure new domestic gas supplies as conventional production declines, while the Northern Territory - where more than 90 per cent of electricity is generated from gas-fired power - is pushing to bolster its long-term energy security.
Gas from the Carpentaria project's Velkerri shale contains less than about 1 per cent carbon dioxide, giving it a processing advantage over some northern offshore Australian gas streams.
The company has already secured its first customer through a long-term gas sales agreement with the Northern Territory Government.
With 100 per cent ownership of its acreage and about 28.9 million acres across the Beetaloo and McArthur basins, Beetaloo controls one of the region's largest footprints as overall development gathers momentum.
Nearby gas plays, including Tamboran Resources' Shenandoah South project, Santos' 2026 Beetaloo drilling campaign and INPEX's recent farm-in to Daly Waters Energy's acreage, have boosted the basin’s chances of becoming Australia's next major onshore gas province.
For Beetaloo, this latest test result moves the story beyond simply proving a resource exists. The company has demonstrated repeatable production, with processing infrastructure under construction, pipeline access secured and a long-term gas sales agreement in place.
With first gas sales now firmly on the horizon, the focus has shifted from exploration potential to production reality.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Penny Taylor
