Beetaloo Energy Carpentaria Pilot Project Targets 2026 Production

World-Class Resource Base Drives Investment Thesis

The Beetaloo Energy Carpentaria Pilot Project represents a pivotal development in Australia's unconventional gas sector, with the company recently presenting at the NAPE Summit Houston to outline its comprehensive three-phase strategy. The presentation emphasised Beetaloo Energy's unique position as the largest acreage holder in the prolific Beetaloo Basin, with first gas production targeted for 2026 through its flagship pilot project.

The company's ambitious roadmap spans from initial pilot production to full-scale LNG export capability, positioning BTL to capitalise on both domestic Australian gas shortages and growing Asian LNG demand. With ~3 million net effective acres under 100% ownership and 1.6 TCF of 2C contingent resources already established, the presentation highlighted how Beetaloo Energy has systematically de-risked its development pathway through strategic partnerships and operational achievements.

Massive Scale Resource Position

The presentation emphasised the sheer scale of Beetaloo Energy's resource position, with the company holding 100% interest in approximately 3 million net effective acres across the Beetaloo Basin. Furthermore, the resource base includes:

The presentation highlighted that Beetaloo's resource concentration significantly exceeds many established plays, with the Velkerri "B" Shale alone delivering 100 BCF per square mile and the complete stacked play exceeding 160 BCF per square mile.

Geological Advantages Create Competitive Edge

The company's technical data demonstrates that the Velkerri Shale reservoir properties are directly comparable to the prolific Marcellus Shale in Pennsylvania. In addition, key geological indicators include:

• Effective porosity: 6.2% (comparable to Marcellus)
• Total organic content: 4.0% (equivalent to proven US plays)
• Net thickness: 250 feet in B Shale alone (significantly thicker than Marcellus)
• Thermal maturity: 1.6% Ro (optimal for gas generation)

Management Insight:
"Beetaloo Energy's four stacked shale reservoirs are 5x thicker than the prolific Marcellus Shale, providing multiple development opportunities from single pad locations."

Strategic Three-Phase Development Plan

Phase 1: Carpentaria Pilot Project (2026)

The immediate focus centres on the Beetaloo Energy Carpentaria Pilot Project, targeting up to 25 TJ/day production with first revenue expected in 2026. However, key components include:

Production Infrastructure:

• Three existing horizontal wells (Carpentaria-2H, 3H, and 5H)
• 42 TJ/day capacity Carpentaria Gas Plant (purchased and under installation)
• Direct connection to McArthur River Gas Pipeline

Financial Framework:

• $30 million Midstream Infrastructure Facility secured with Macquarie Bank
• 10-year binding gas sales agreement with NT Government
• Take-or-pay basis at competitive market prices with CPI escalation

Phase 2: Domestic Gas Project (~200 TJ/day)

The second phase targets Australia's domestic gas supply shortage, with AEMO forecasting significant shortfalls across Southern States from 2028 onwards. Consequently, Beetaloo Energy's 2.6 million net effective acres across Western Beetaloo provides substantial drilling inventory for this expansion phase.

Phase 3: Full Field Development (~1 BCF/day for LNG Export)

The final phase positions Beetaloo Energy as a major LNG export supplier to Asian markets, leveraging Australia's strategic location and existing infrastructure connections to Darwin and East Coast LNG facilities.

Recent Operational Achievements Build Confidence

Carpentaria-5H Delivers Strong Performance

The company's latest well results demonstrate the effectiveness of its enhanced completion techniques:

The disciplined flowback strategy resulted in significantly improved fracture conductivity compared to earlier wells, indicating enhanced long-term production potential for the Beetaloo Energy Carpentaria Pilot Project.

Strategic Partnership Portfolio

The presentation outlined Beetaloo Energy's impressive array of strategic relationships:

• Halliburton: World's second-largest oil service company providing fracture stimulation
• Liberty Oilfield Services: Major US shale fracturing specialist and equity investor
• Macquarie Bank: $65 million financing package including infrastructure facility
• APA Group: Pipeline infrastructure development partnership
• NT Government: Binding offtake agreement providing revenue certainty

Understanding Unconventional Gas Development

What Makes Shale Gas "Unconventional"

Unlike conventional gas reservoirs where gas flows freely through porous rock, unconventional shale gas is trapped within extremely low-permeability rock formations. For instance, the gas is extracted through horizontal drilling combined with hydraulic fracturing (fracking), which creates artificial pathways for gas to flow to the wellbore.

Why This Matters for Investors

Successful unconventional gas development requires:

1. Large-scale acreage positions (which Beetaloo Energy has secured)
2. Advanced completion techniques (demonstrated through Carpentaria-5H results)
3. Proximity to infrastructure (achieved through pipeline connections)
4. Favourable geology (confirmed through reservoir characterisation)

The stacked play nature of Beetaloo's reservoirs allows multiple wells to be drilled from single locations, significantly improving development economics compared to single-reservoir plays.

How Stacked Reservoir Development Works

The presentation highlighted that Beetaloo Energy's four stacked shale reservoirs are 5x thicker than the prolific Marcellus Shale. This geological advantage enables:

• Multiple wells per pad: Reduces surface footprint and infrastructure costs
• Improved development efficiencies: Similar to successful Permian Basin approaches
• Enhanced economics: More production from fewer surface locations

Market Timing Supports Premium Valuations

Global LNG Supply Shortage Emerging

The presentation referenced Shell's LNG Outlook 2025, which identifies structural LNG shortages from 2034, creating a premium pricing environment for new supply sources. Moreover, Australian LNG projects benefit from:

• 7-day shipping distance to key Asian markets (vs 25+ days from US Gulf Coast)
• Lower shipping costs: $1.14/MMBtu to Japan vs $2.30/MMBtu from US Gulf Coast
• Established infrastructure and regulatory frameworks

Australian Domestic Gas Crisis

AEMO forecasting indicates significant gas supply shortfalls across Southern States and Northern Territory from 2028 onwards. Furthermore, recent wholesale gas prices demonstrate the premium pricing environment:

• Adelaide: $16/MMBtu
• Brisbane: $12/MMBtu
• Sydney: $8/MMBtu
• US Henry Hub: $4.01/MMBtu (reference price)

This represents a 2-4x premium over US benchmark pricing, highlighting the value proposition for Australian gas producers.

Strong Financial Position Supports Execution

Current Capital Structure

• Share price: A$0.25 (as of 19 February 2026)
• Market capitalisation: A$311.0 million
• Cash position: A$18.0 million (31 December 2025)
• Available debt facilities: A$65.0 million total

Funding Pathway Secured

The presentation outlined the company's financial framework:

• $30 million Midstream Infrastructure Facility specifically for Carpentaria Gas Plant
• R&D Tax Offset of approximately $14 million expected in H1 2026
• Revenue generation from pilot project targeted for 2026

However, the company's high net revenue interest of 85-90% compares favourably to typical US unconventional plays (~75%), providing enhanced cash flow generation potential.

Technical Excellence Demonstrated Through Carpentaria-5H

Enhanced Completion Strategy

The presentation detailed how Beetaloo Energy's disciplined approach to the Carpentaria-5H clean-up flow test resulted in superior performance metrics:

Key Technical Achievements:

• 67 fracture stages across 2,955-metre horizontal section
• Restricted-choke methodology to preserve long-term well integrity
• >5x increase in maintained fracture conductivity versus earlier wells
• Higher apparent shale permeability (~60% improvement)

Technical Breakthrough:
"The disciplined flowback strategy applied resulted in significantly improved fracture conductivity relative to earlier Carpentaria wells, consistent with a focus on long-term well performance."

Upside Potential Remains

The presentation noted that ~23% of injected frac fluid recovered to date, with previous wells recording up to 30% uplift in IP30 rates following full clean-up. Consequently, this indicates potential for further improvement when the flow test recommences in late Q1/early Q2 2026.

Why Investors Should Track Beetaloo Energy

Unique Market Position

The presentation positioned Beetaloo Energy as representing a rare combination of large-scale unconventional gas opportunity with near-term production catalysts. Furthermore, the company's position as the largest acreage holder in a prolific basin, combined with proven reservoir quality and established infrastructure connections, creates a compelling investment proposition.

Multiple Value Inflection Points

The presentation outlined how the company's three-phase development plan provides multiple re-rating opportunities:

1. 2026: First gas production and revenue generation
2. 2028-2030: Domestic gas project addressing supply shortfalls
3. 2030+: Full field development for LNG export markets

Operational Excellence Framework

The Carpentaria-5H results showcase the company's ability to execute complex unconventional development programs, with 5x improvement in fracture conductivity indicating significant technical advancement over previous attempts.

Investment Catalyst Timeline:

• Q1/Q2 2026: Carpentaria-5H flow test recommencement
• Q2 2026: Carpentaria Gas Plant installation
• H2 2026: First gas sales commencement
• 2027+: Western Beetaloo development program

Technical Advantages Drive Long-Term Value

Superior Gas Quality

The presentation highlighted that Beetaloo Energy's Carpentaria Project gas composition provides approximately 10% value uplift over dry gas due to:

• Higher energy content: 1 mcf ≈ 1.15 GJ vs 1.05 GJ for dry gas
• Low CO2 content: <1% versus typical Australian gas fields
• High ethane content: ~12% enhancing commercial value

Strategic Positioning for Ichthys Blend

The company's gas composition is positioned to support Ichthys LNG back-fill and planned expansion, with Beetaloo's low CO2 and high ethane content offering blending advantages for existing Darwin infrastructure.

Beetaloo Energy has positioned itself as Australia's premier unconventional gas development story, with the scale, technical capability, and strategic partnerships necessary to capitalise on both domestic gas shortages and international LNG demand growth. In addition, the presentation demonstrated the company's systematic approach to de-risking its world-class resource base, combined with near-term production catalysts that make it a compelling opportunity for investors seeking exposure to Australia's energy transition and Asian LNG market growth.

The convergence of favourable market conditions, proven reservoir quality, and execution capability suggests that the Beetaloo Energy Carpentaria Pilot Project is well-positioned to deliver significant shareholder value as the company progresses through its three-phase development plan over the coming decade.

Want to Learn More About Beetaloo Energy's Development Strategy?

With first gas production targeted for 2026 and a world-class resource position spanning 3 million net effective acres, Beetaloo Energy's three-phase development plan presents a compelling investment opportunity in Australia's unconventional gas sector. The company's strategic partnerships, proven technical capabilities, and positioning to capitalise on both domestic gas shortages and Asian LNG demand make it a standout player in the Beetaloo Basin. To explore Beetaloo Energy's complete project portfolio, financial framework, and upcoming production catalysts, visit www.beetalooenergy.com for comprehensive investor information and the latest operational updates.