Top End Energy provided an update on the Company's planned 2022/23 work program for the prioritised Greater McArthur Basin permit applications (the Permits) in the Northern Territory (NT). HIGHLIGHTS - Target near-term grant of prioritised Greater McArthur Basin permits proximate to the highly prospective and active Beetaloo Basin; Seismic acquisition campaign intended for H1 2023 to confirm the extension of the Velkerri Shale and presence of the conventional Bessie Sandstone formation; Prospective resource definition and identification of drilling prospects targeted for H2 2023 ahead of an initial exploration well in late 2023 /early 2024; The Company has been allotted On Country Meetings in Third Quarter 2022 to pursue agreements for grant and work program approvals with native title holders; and Support for the NT gas industry and Beetaloo reaffirmed by the NT government following appointment of new Chief Minister. DETAILS - The Company holds a 50% beneficial interest in 30 permit applications across the Northern Territory, covering ~160,000 km2. The Company has prioritised key permits based on initial technical assessments of the available data. Of these key permits, the Company is engaging with the Northern Land Council (NLC), native title holders and traditional owners to reach exploration agreements ahead of the formal grant and work program approvals for EP 258 and EP 259. EP 258 and EP 259 are located on the edge of the Greater McArthur Basin, south of discoveries within the Velkerri and Kyalla Shales and the conventional Moroak and Bessie
Creek Sandstone reservoirs. Although there are no seismic data on the permits, seismic lines ending north of the permits suggest that both the conventional Bessie Sandstone and unconventional Velkerri Shale may be present within the deeper basin sections of the permits. The Velkerri Shale is a shale gas target for operators such as Santos, Origin and Empire Energy across the Beetaloo sub-basin. The Company has been allotted placeholder dates for On Country Meetings (OCM) with the native title holders of EP 258 in Third Quarter 2022. It is intended by the Company that an exploration agreement ancillary to an agreement under section 31(1)(b) of the Native Title Act 1993 (Cth) be reached for the grant of the permit and approval of the proposed 2023 work program during these meetings. Subject to confirmation from the NLC, the Company also intends to reach similar agreements under the Aboriginal Land Rights (Northern Territory) Act with the traditional owners of EP 259. In parallel, the Company will begin negotiation of land access agreements and procurement of environmental and other approvals required to undertake the proposed 2023 work program. While EP 258 and EP 259 are the near-term focus in the NT, the Company also continues to pursue other prioritised permit applications, targeting the formal grant of additional applications in 2023. Proposed 2022 /23 Work Program - The Company intends to acquire up to ~150 km of seismic survey in H1 2023 (the Acquisition). The proposed scope of the campaign covers key target areas of both EP 258 and EP 259; The Company may also undertake a pre-grant scouting trip, subject to agreement with the NLC, native title holders and traditional owners; Top End is working with its external project management team, inGauge Energy, to prepare for the OCMs and commence work on procuring the necessary approvals for undertaking the Acquisition; and Subject to the outcome of the Acquisition and subsequent interpretation, the Company will identify potential prospects ahead of drilling an initial exploration well in late 2023 /early 2024.