Alex Underwood, Managing Director of Beetaloo Energy Australia, provides exciting updates on the Beetaloo Basin, where the company is proceeding to pilot production and gas sales from its Carpentaria project.
BREAKTHROUGH IN THE BEETALOO BASIN
The Beetaloo Basin is one of the world’s largest shale gas accumulations, with estimated recoverable resources exceeding 100 trillion cubic feet.
As a leading pure-play Northern Territory (NT) hydrocarbon company, Beetaloo Energy Australia (BTL) provides direct exposure to the basin’s development and its potential contribution to Australia’s future energy security.
“We’re focused on developing shale gas resources in the Beetaloo Basin, which we’ve held positions in since 2011,” says Alex Underwood, Managing Director of BTL.
“To realise value from those resources, you have to prove it’s commercially viable, so that’s been our focus.”
Shale gas development is a relatively recent global phenomenon. It was only around two decades ago that advances in horizontal drilling and hydraulic fracture stimulation unlocked production from low-permeability formations in the US.
The result was transformational – reshaping the US energy market, delivering energy independence, and establishing the country as a major exporter of oil and gas.
Australia now has the opportunity to follow a similar path through development of the Beetaloo Basin, which is gaining global recognition as a significant and emerging shale gas province.
It has the potential to strengthen gas supply to the NT and Australia’s East Coast at a time of increasing market pressure.
“If you step back from the project itself, the importance of more gas supply into the Australian market is really coming to a head right now,” Underwood observes.
“Despite Australia being very rich in many mineral resources, we’re facing shortages of gas on the East Coast. That is driving prices higher and causing a serious strain on household budgets and the manufacturing sector.”
BTL believes the Beetaloo Basin can play a meaningful role in addressing these challenges by supplying additional low-carbon dioxide (CO2) gas into the domestic market – supporting price stability, energy reliability, and broader economic growth.
“As a company, we’re very proud of the role that we’re playing,” he highlights.
CRITICAL APPROVALS
In December 2025, BTL achieved a major regulatory milestone with NT government approval to sell appraisal gas from its Carpentaria project in the Beetaloo Basin.
“We have drilled five wells in our Carpentaria project – two vertical and three horizontal – and we have carried out fracture stimulation and flow testing on all three of the horizontals and one of the verticals. We are now moving into pilot production from that project,” Underwood explains.
“There was a wide range of approvals we needed to get from the NT government – first of all, approval to drill wells and fracture stimulate and flow test them, which we’ve done, but also approval to sell gas in the pilot phase.”
Under an existing 10-year gas sales agreement with the NT government, gas that would previously have been flared will now be supplied directly into the Territory’s energy system.
Notably, this approval represents the first time a Beneficial Use of Gas (BUG) application has been granted on Aboriginal land in the NT.
For an industry often challenged by social licence considerations, the strong support of Traditional Owners provides BTL with a solid foundation to advance its development plans across the Beetaloo Basin.
“Critically, we required the consent of the Traditional Owners of the area in which we operate to move into that pilot production phase, and we were very pleased to get that approval last year,” confirms Underwood.
“If you step back from the project itself, the importance of more gas supply into the Australian market is really coming to a head right now”
Alex Underwood, Managing Director, Beetaloo Energy Australia
CGP CONSTRUCTION
With Traditional Owner consent in place, BTL has commenced on-the-ground activites, including construction of the Carpentaria Gas Plant (CGP), a compact processing facility acquired from AGL in 2023.
“We were very fortunate to acquire the gas plant, which had previously been processing gas for a coal seam methane field on the outskirts of Sydney where I live,” Underwood shares.
“We bought that for a very good price and relocated it to Queensland, where it has been undergoing some refurbishment.”
Regulatory approval has also unlocked an AUD$30 million credit facility from Macquarie Bank to support project construction.
Total installed costs for the CGP are expected to be well below those of a comparable new-build facility.
“We have completed the civil construction activities for the site in the NT, where it will be located, and we will be moving it up to the site in a couple of months,” informs Underwood.
Once operational, with initial production targeted for mid-2026, the CGP will process gas from BTL’s Carpentaria project and deliver it into the McArthur River Pipeline – supplying gas directly into the NT market.
“Critically, we required the consent of the Traditional Owners of the area in which we operate to move into that pilot production phase, and we were very pleased to get that approval last year”
Alex Underwood, Managing Director, Beetaloo Energy Australia
EQUIPPED FOR THE JOB
One of the key technical challenges in the Beetaloo Basin has been drilling and fracture stimulating large horizontal wells.
Until recently, much of the required equipment was not available in Australia; however, this has changed significantly over the past few years.
“We’ve seen major US and international service providers bring drilling rigs into the basin, such as Helmerich & Payne and Ensign Energy, who drilled our last well,” outlines Underwood.
Fracture stimulation operations in the Beetaloo Basin are also larger in scale than those in many other Australian fields.
“Halliburton and Liberty Energy have brought in big pieces of equipment to allow us to start opening up the basin, and their support is very much appreciated,” he acknowledges.
BTL plans to undertake further flow testing on Carpentaria-5H, the longest horizontal well drilled in the Beetaloo Basin, in late Q1 or early Q2 2026.
Operationally, the company’s primary focus over the coming year will be commissioning the CGP and commencing pilot-phase gas sales from the Carpentaria-2H, 3H, and 5H wells in the pilot phase.
“We expect those first sales to commence later this year,” Underwood concludes optimistically.
