Beetaloo Operations Update
Sydney, Aug 4, 2023 AEST (ABN Newswire) - Empire Energy Group Limited (ASX:EEG) (EEGUF:OTCMKTS) is pleased to provide shareholders with an update regarding the operations in Empire's 100% owned and operated EP187, located onshore Northern Territory in the Beetaloo Sub-basin ("Beetaloo").
Carpentaria-3H ("C-3H") Flow Testing Recommences
On 3 August 2023, C-3H was re-opened for continued extended production testing ("EPT"). Empire expects to continue the EPT for up to 90 days.
The purposes of re-opening the C-3H well for continued EPT, coupled with the recent Carpentaria-2H EPT are multifold:
- to examine the benefits of "soaking" in the Beetaloo Sub-basin;
- to further refine production type curves for Carpentaria Pilot Project planning and final investment decision later this year (subject to financing, gas sales and transportation agreements, regulatory approvals and Board approval);
- to better understand the flow characteristics of the Velkerri B shale for optimal fracture stimulation and future completion design;
- time-lapse appraisal of the different stimulation fluids, reservoir landing interval and completion techniques in the wells; and
- to gather flow data to optimise future well trajectory design for Pilot Project drilling.
Comments from Managing Director Alex Underwood:
"The Empire team is excited to recommence flow testing at C-3H, the longest horizontal well drilled in the Beetaloo Basin to date and the largest fracture stimulation carried out in Australian history. The results of renewed flow testing from this well will continue to build Empire's technical knowledge base as we progress rapidly towards a final investment decision for the pilot project.
Subject to FID, this would make Empire the first company to commercially extract gas from the Beetaloo Basin.
With all regulatory settings now in place to allow a commencement of production, current market forces require more gas supply into the Northern Territory and adjacent markets as existing sources of supply decline. This provides a timely opportunity for Empire to fulfill gas demand, providing jobs, royalties for the NT Government and traditional owners, and energy security domestically.
Empire's conservative approach to capital management has ensured that the company is well capitalised to progress through its 2023 work programs. The C-3H flow testing and the work to progress to FID on the pilot project will be funded from existing cash at bank. We look forward to sharing the new C-3H results with shareholders soon."
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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.