Annual Report to shareholders
Sydney, Mar 31, 2022 AEST (ABN Newswire) - Empire Energy Group Ltd (
ASX:EEG) (EEGUF:OTCMKTS) acquired Pangaea (NT) Pty Limited's and EMG Northern Territory Holdings Pty Limited's 100% interests in EP167, EP168, EP169, EP198 and EP305, increasing our Northern Territory Beetaloo Sub-basin and greater McArthur Basin acreage position to 28.9 million acres. A globally significant resource and land position.
Empire successfully drilled, cased and suspended Carpentaria-2H, our first horizontal well located within 100% owned and operated EP187. Carpentaria-2H was drilled on time and budget with the longest horizontal cased section of 1,345 metres in the Velkerri Formation to date. This followed the fracture stimulation of the Carpentaria-1 vertical well which flowed at 0.364 mmscf / day over a 10 day testing period. Empire also acquired 164-line km of 2D infill seismic over EP187 which demonstrated a materially increased breadth and depth of Velkerri Shale resource within the tenement.
These operational and technical results drove a substantial increase to EP187 resources following completion of the successful 2021 work program. Netherland, Sewell & Associates, Inc ("NSAI") independently assessed 2C Contingent Resources of 396 BCF, an increase of 866%, and a 23% increase in best estimate P(50) Prospective Resources to ~4.3 TCF, respectively for EP187. Empire's total Beetaloo Subbasin 2C Contingent Resources are now 554 BCF.
Your Board and management look forward with you to recommencement of on-ground operations at Carpentaria-2H after the wet season. Long-lead items for Carpentaria-2H have been ordered and fracture stimulation design completed in readiness for the fracture stimulation and extended production testing of this horizontal well. Working with leading fracture stimulation technical experts in Australia and USA, Empire will test advanced fracture stimulation design techniques in order to optimise the completion of future development wells.
Empire is focused on becoming the first operator in the Beetaloo Sub-basin to enter into commercial production. Commensurate with this goal, during 2021 we executed Memoranda of Understanding ("MOUs") with APA Group (ASX:APA) to optimise development pathways for the development of Beetaloo Sub-basin mid-stream infrastructure and access to the existing Amadeus Gas Pipeline and with the Northern Territory's own Power and Water Corporation for gas sales and transportation arrangements utilising the McArthur River Gas Pipeline.
*To view the full Annual Report, please visit:
https://abnnewswire.net/lnk/53XQ9SX9
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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