Quarterly Activities Report
Sydney, July 29, 2022 AEST (ABN Newswire) - Empire Energy Group Ltd (
ASX:EEG) (EEGUF:OTCMKTS) provide the Quarterly Activities Report June 2022.
Q2 2022 Highlights
- Carpentaria-2H hydraulic stimulation is progressing
- Preparations continue for the drilling of Carpentaria-4V, and drilling and hydraulic stimulation of Carpentaria-3H later in 2022
- Empire received Beetaloo Cooperative Drilling Program progress payments totaling $5.4 million in cash (ex-GST) during the Quarter
- Mr. Robin Polson appointed as Chief Financial Officer
- Empire has successfully completed capital raising activities comprising a single-tranche placement to raise $27.5 million (gross) and a $2.5 million fully underwritten Share Purchase Plan
- Empire's US operations reported a positive EBITDA for Q2 2022 of US$1.5 million supported by strong Henry Hub gas prices (Q1 2022: US$0.6 million)
- Global gas markets remain tight as European and Asian gas buyers compete for LNG volumes. Australian domestic gas market is also stressed
- Cash at the end of the Quarter was $45.3 million
Comments from Managing Director Alex Underwood:
"The June quarter was engaged with a substantial effort to raise new capital to fund the expanded 2022 work program.
Empire thanks those that participated in the Placement and SPP, despite the 13.5% fall in the ASX over the quarter and the uncertainty of a federal election, raising $30 million (gross) for Empire. Subject to shareholder approval at the forthcoming General Meeting, directors will invest a further $520,000. The capital raised and the receipt of Beetaloo Cooperative Drilling Program funds has put the company in a strong financial position allowing us to roll out the most active work program in our history.
As previously announced, we are currently completing hydraulic stimulation ahead of flow testing of C2H, our first horizontal well. We will move directly into drilling C-4V to add to our 2C contingent resource base. We will then drill and flow test C-3H based on the knowledge gained from C-2H.
This extensive field program, the most active in the Beetaloo Sub-basin this year, will reinforce Empire Energy as a significant emerging gas developer."
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/O0MQE906
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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