Quarterly Activities Report
Sydney, Jan 31, 2022 AEST (ABN Newswire) - Empire Energy Group Ltd (
ASX:EEG) (EEGUF:OTCMKTS) provide the quarterly report for the period ending 31st December 2021.
Q4 2021 Highlights
- Carpentaria-2H successfully drilled, cased, and suspended on time and on budget
- 192 metres of net pay intersected through the Velkerri A, B, Intra A/B and C shales
- Carpentaria-2H has been suspended awaiting fracture stimulation and flow testing to start in Q2 2022 after the wet season
- Final cost for delivering Carpentaria-2H approximately $11.1 million
- Empire and the Commonwealth have commenced discussions to enter into new Beetaloo Cooperative Drilling Program agreements to support work programs in accordance with the Federal Court decision on 23 December 2021
- The Charlotte 2D seismic survey was acquired during the Quarter in EP187, demonstrating that the Velkerri shales in the Eastern prospective area are at equivalent depths to Carpentaria-2H over a greater area than previously mapped
- NSAI update to Empire's Contingent and Prospective Resources Report in EP187 expected during February 2022
- Gas sales and transportation MOU executed with Northern Territory Government-owned Power and Water Corporation
- 12m Unlisted Options exercised which raised $3.84 million cash (gross)
- Cash at the end of the quarter was $25.8 million
Comments from Managing Director Alex Underwood: "I am pleased to share the results of another successful quarter with our shareholders. We drilled our first ever horizontal appraisal well in the Beetaloo Sub-basin, Carpentaria-2H, on time and on budget. This is a significant milestone, given the operational and geological complexities of doing so in a remote location in an emerging basin. We look forward to sharing the results of an updated independent resource report reflecting these results in the coming weeks, and fracture stimulating the well in Q2. We are in a pivotal period for the Beetaloo Sub-basin, with at least five horizontal appraisal wells targeting the Middle Velkerri B shale either underway or planned (Empire's Carpentaria-2H, two wells recently drilled and stimulated by the Santos / Tamboran JV, and two wells planned by the Origin / Falcon JV). We continued to progress our early commercialisation strategy following the execution of an MOU with NT's Power Water Corporation, which provides for the transportation and sale of gas into the existing McArthur River Pipeline. This complements our longer term plans in partnership with APA Group to send large volumes of low CO2 gas to Australia's East Coast and to LNG export markets via Darwin. The positive progress being made across the Beetaloo comes at a critical time for global energy security. Severe energy market dislocation, characterized by energy shortages in Europe, record high gas prices and geopolitical tensions, demonstrates the critical role of gas in the energy transition and the urgent need for new sources of low CO2 supply. I am proud of the central role that the Empire team, including our employees, contractors, Board, shareholders and local stakeholders are playing in realizing the potential of the Beetaloo and the energy security it may bring to hundreds of millions of people across our region and express my gratitude to each of you for your support."
*To view the full Quarterly Report with tables and figures, please visit:
https://abnnewswire.net/lnk/8J5P888A
About Empire Energy Group Ltd
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) is a Sydney based Australian oil and gas company holding 100%-owned and operated assets with unconventional targets in the Northern Territory Beetaloo Sub-basin and central trough of the McArthur Basin.
Empire is an active Beetaloo Sub-basin operator, focused on maturing its assets to production. Following the successful appraisal drilling and flow testing of the Carpentaria-2H and 3H wells in Empire's EP187, Empire is targeting first gas flow in H1 2025 at its Carpentaria Pilot Project. The Pilot has a targeted sales gas rate of up to 25 TJ per day utilising the existing McArthur River Pipeline.
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