Beetaloo Energy Reports On-Track Progress for Carpentaria Gas Plant Construction and Q4 2026 Commissioning

Steady Advancement of Carpentaria Gas Plant Toward Year-End Commissioning

During the June 2026 quarter, Beetaloo Energy progressed significantly with the Carpentaria Gas Plant construction. Major plant components have been installed onsite, with structural and mechanical works well underway. The project remains aligned with the planned timeline and budget for commissioning in Q4 2026. Clearing for flowlines linking Carpentaria wells to the plant was finalized, marking a key Pilot Project milestone. The company highlighted that all activities have been conducted safely with no reportable incidents.

This progress marks a pivotal shift from planning and funding to active execution of the Carpentaria Pilot Project. Upon commissioning in Q4 2026, the plant will facilitate initial pilot gas sales by connecting existing horizontal wells Carpentaria-2H, Carpentaria-3H, and Carpentaria-5H. This schedule positions Beetaloo Energy to begin revenue-generating operations within 2026, contingent on successful commissioning and regulatory approvals.

Carpentaria-5H Well Exhibits Strong Production and Minimal Decline

The Carpentaria-5H well underwent extended flow testing starting 11 June 2026 after previous shut-in and flowback phases. Initial flow rates exceeded 14 TJ/day before stabilizing. The 30-day initial production test (IP30), completed after the quarter, averaged 6.9 TJ/day with a 6.7 TJ/day exit rate. These results indicate a notably low decline rate across multiple testing periods, offering valuable insights for reservoir characterization and production planning.

This performance supports the earlier disclosed 2C recoverable gas estimate of about 10 PJ at this well, as detailed in the May 2023 NSAI Contingent and Prospective Resources report. The low decline rates have bolstered management’s confidence in resource quality and the horizontal well development strategy. After testing, the well was shut in and will remain offline until integrated with the Carpentaria Gas Plant ahead of pilot sales. The well’s strong results validate the company’s broader Beetaloo Basin development approach.

Completion of Birdum Creek Seismic Survey to Enhance Future Drilling Plans

Beetaloo Energy initiated the Birdum Creek 2D Seismic Survey in mid-June, completing it post-quarter. The 236-kilometre survey spans EP167 and EP168, covering a resource area exceeding 20 TCF within the company’s Western Permits. The seismic data acquisition aims to support future horizontal drilling programs, improve reservoir understanding, and optimize drilling opportunities across this prospective acreage. The company regards these permits as highly prospective and expects the seismic data to be crucial for future development planning.

Seismic processing is underway, with interpretation slated for completion in Q3 2026. This timeline will enable the company to incorporate interpreted data into planning and executing future horizontal drilling and stimulation activities. The seismic acquisition aligns with Beetaloo Energy’s strategy to reinforce foundations for growth across its Beetaloo Basin portfolio. The company also noted accelerating activity basin-wide as operators advance appraisal and pilot projects, reinforcing confidence in the basin as a strategically significant Australian gas source.

Capital Raise and Share Purchase Plan Bolster Financial Position

During the quarter, Beetaloo Energy completed a $5.0 million Share Purchase Plan, complementing a $66.3 million institutional Placement finalized in April 2026. This allowed existing eligible shareholders to participate directly in the capital raise. Combined, these efforts have significantly strengthened the company’s balance sheet and provided ample funding for Carpentaria Gas Plant construction and broader Northern Territory development activities. The company emphasized that these funds facilitate the transition from planning to active project execution.

The successful capital raises underscore investor confidence in Beetaloo Energy’s strategy and development plans. The funds provide the flexibility to advance multiple work streams across the Beetaloo Basin assets concurrently. This financial position supports funding through commissioning and early pilot production without immediate need for additional equity capital, critical given the capital-intensive nature of onshore gas development and the company’s portfolio growth ambitions.

Macquarie Midstream Infrastructure Facility Secures $45 Million in Development Financing

Beetaloo Energy met all conditions precedent for a $45 million Macquarie Midstream Infrastructure Facility during the quarter and completed an initial $2.5 million drawdown to support Carpentaria Pilot Project construction. As of 30 June 2026, $42.5 million remains available for future drawdowns. This achievement confirms the company’s compliance with lender requirements and supports the project’s feasibility and bankability.

The facility provides non-dilutive funding aligned with project milestones, enabling progressive drawdowns as construction advances. Additionally, the company holds a $30 million Research and Development Credit Facility, with $17.5 million undrawn at quarter-end and no drawdowns made during the period. This diversified funding mix, combining equity, debt, and potential R&D tax incentives, ensures multiple financial sources to support development and reduces reliance on any single capital avenue.

Liquidity Position Strengthened to $124.9 Million for Operational Execution

By the end of June 2026, Beetaloo Energy’s total liquidity reached $124.9 million, consisting of $63.3 million in cash and $61.5 million of undrawn Macquarie facility funding. This robust liquidity reflects successful capital raises and available debt facilities, providing ample resources to fund the Carpentaria Pilot Project through commissioning and early production, as well as ongoing exploration and development across the Beetaloo Basin.

This strong liquidity position affords the company the financial flexibility to execute planned activities without immediate pressure for additional equity financing. Given the capital intensity of onshore gas projects, this financial strength enables the advancement of multiple work streams and responsiveness to emerging opportunities or operational adjustments. Management’s focus on maintaining a solid balance sheet and financial agility is reinforced by recent funding successes and available undrawn facilities.

Territory Sands Loan Agreements Secure Frac Sand Supply Chain

During the quarter, Beetaloo Energy and Territory Sands Pty Ltd finalized long-form loan agreements to finance the Forest Hill South frac sand project, following a binding term sheet announced previously. Initial loan funding was provided post-quarter to initiate this in-basin frac sand operation. Developing a local frac sand supply is a key element of Beetaloo Energy’s long-term supply chain strategy for the Beetaloo Basin, expected to reduce logistics costs and ensure supply certainty for future horizontal drilling and stimulation.

The loan agreements demonstrate the company’s strategic commitment to integrated supply chain solutions. Frac sand is essential for hydraulic fracturing in horizontal wells. By supporting in-basin frac sand development through loan funding, Beetaloo Energy invests in infrastructure that will benefit its drilling programs and potentially other operators in the basin. This aligns with the company’s broader vision of establishing the Beetaloo Basin as a vital new Australian gas supply source.

FY2025 Research and Development Tax Incentive Application Submitted

Following receipt of the FY2024 Research and Development Tax Incentive refund during the quarter, Beetaloo Energy lodged its FY2025 application with AusIndustry. The application, registered with a unique number, covers eligible R&D activities for the year ended 31 December 2025. The company plans to file its FY2025 income tax return with the Australian Taxation Office in July 2026, including this R&D claim. The scheme offers potential cash refunds for qualifying Australian R&D activities.

Continued participation in the R&D Tax Incentive program reflects Beetaloo Energy’s ongoing investment in exploration, technical evaluation, and development planning within the Beetaloo Basin. These incentives provide additional financial resources, reducing net costs of eligible activities. The lodgement and receipt of refunds contribute to the company’s overall financial capacity for operations. The program’s availability to eligible Australian companies underscores Beetaloo Energy’s qualification based on its technical and development efforts.

Strategic Positioning in Beetaloo Basin Amid Growing Pilot Project Activity

Beetaloo Energy is advancing its Carpentaria Pilot Project amid increasing activity throughout the Beetaloo Basin in the Northern Territory. The company noted accelerating basin-wide operations as various operators progress appraisal and pilot development, reinforcing confidence in the basin’s role as a strategically important Australian gas source. The Beetaloo Basin is a significant onshore gas resource with exploration permits held by multiple energy companies. Beetaloo Energy controls substantial acreage, positioning it as a key operator within this emerging development hub.

The company views itself well-positioned to lead the basin’s development as it moves toward first pilot gas sales from the Carpentaria Pilot Project. Successful flow testing of Carpentaria-5H and ongoing gas plant construction have strengthened management’s confidence in the resource and development strategy. The pilot project aims to demonstrate technical feasibility and commercial viability, with potential expansion contingent on pilot success and market conditions. This staged approach manages risks while building shareholder value and unlocking the broader portfolio potential.