Sydney, May 6, 2021 AEST (ABN Newswire) - Empire Energy (ASX:EEG) (EEGUF) has agreed to acquire an 82.5% interest in Exploration Permits EP167, EP168, EP169, EP198 and EP305 (together the "Vendor Tenements") from Pangaea, a company founded and owned by Mr Paul Fudge, an established company builder and hydrocarbon project operator.
The Vendor Tenements complement our existing acreage in the Northern Territory's the Greater McArthur Basin and Beetaloo Sub-Basin. Netherland, Sewell and Associates, Inc ("NSAI") has independently assessed a best estimate Prospective Resource of 22.8 TCF gas and 630 MMbbls liquids net to the acquired 82.5% interest in the Vendor Tenements.
NSAI has also independently assessed 2C Contingent Resources in the Pangaea interests in the Vendor Tenements of 130 BCF gas and 2.9 MMbbls liquids.
A transformational acquisition for Empire
The transaction is transformational for Empire and will support our goal to reach commercialisation through:
- An enhanced opportunity to create the leading onshore NT energy company: the acquisition of Pangaea increases Empire's 2C contingent resource to ~171 BCF and best estimate prospective resource to ~37 TCF of gas and 657 MMbbls of oil;
- Enhanced drill ready location inventory: ~$110 million (gross) has been spent on the Pangaea properties to date providing Empire with an inventory of appraisal and horizontal drilling locations across a well-defined subsurface data set; and
- Further pathways to gas markets: Pangaea's assets are located adjacent to the Amadeus Gas Pipeline, which connects to Darwin and to the Northern Gas Pipeline and on to east coast markets. This complements Empire's plans to produce gas from its Carpentaria Project into the McArthur River Mine Gas Pipeline. Pangaea's acreage is in close proximity to existing road and rail infrastructure, which materially enhances accessibility for development work at the earliest time.
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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.