Which emerging ASX gas producer could deliver almost 80% gains?

Gas supply in Australia was a hot topic even before the military action in Iran threw a spanner in the works of global gas supplies.

How we supply our own markets has been a topic of increasing interest for the past few years, with the Beetaloo Basin in the Northern Territory a closely watched area for potential new gas supplies.

Emerging producer

One of the companies that has been active in the region is Beetaloo Energy Australia Ltd (ASX: BTL), which has a big year ahead of it, at least according to the analyst team at Canaccord Genuity.

Beetaloo Energy is currently a modestly-sized company, valued at just $305.3 million, but the Canaccord team thinks there’s potential for this value to grow quickly this year, given the milestones the company is looking to check off.

As Canaccord said in a note to its clients recently:

Beetaloo Energy is an Australian gas company focused on developing unconventional gas resources in the Northern Territory, Australia. It is a dominant player and acreage holder in the Beetaloo Basin – a basin with large, well understood gas potential that has historically been overlooked due to its isolation and above-ground risk. With regulatory risk now largely in the rearview mirror and clear market pull factors emerging, we expect change.

Beetaloo in December made a final investment decision to go ahead with its Carpentaria pilot project, where it is targeting first gas sales by the end of calendar year 2026.

That project has a 10-year gas sales agreement with the Northern Territory Government.

Canaccord said re the development:

If the pilot proves commercial, we expect majors to move quickly, with Betaloo’s strategic foothold and first-mover advantage positioning it as a prime beneficiary of the basin’s potential re-rating.

Other companies active in the Beetaloo Basin include Santos Ltd (ASX: STO) and Tamboran Resources Corporation (ASX: TBN).

Banner year for the company

The Canaccord analysts said further:

CY26/27 marks a key inflection point for Beetaloo as it enters the execution phase after years of appraising/de-risking. Near-term potential catalysts include: 1) recommencement of the C-5H flow test, targeting higher rates and potentially higher estimated ultimate recoveries; 2) installation and commissioning of the Carpentaria Gas Plant (equipment delivery expected 1HCY26, commissioning in Q3 CY26); and 3) commencement of pilot gas sales in 2HCY26, with a ramp to nameplate in CY27/28. In parallel, Santos is set to commence a $300m program in July, and Tamboran is targeting commissioning of its own pilot project in CY26.

The Canaccord team have a speculative buy recommendation on Beetaloo Energy shares, compared with just 25.5 cents currently. That would represent upside of 76.7% if achieved.

The post Which emerging ASX gas producer could deliver almost 80% gains? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.