Empire Energy Group Ltd Stock Market Press Releases and Company Profile


Empire Executes Agreement with APA Group
Empire Executes Agreement with APA Group

Sydney, Aug 8, 2023 AEST (ABN Newswire) - Empire Energy Group Limited (googlechartASX:EEG) (googlechartEEGUF:OTCMKTS) is pleased to announce it has executed an initial agreement with APT Management Services Pty Limited, a wholly owned subsidiary of APA Group, for the establishment of midstream gas infrastructure early works and partnering agreements where, subject to entering long-form agreements and approvals by each party, APA will spend up to $5 million under the Early Works Agreement on Engineering and Design Concepts for midstream gas infrastructure facilities associated with Empire's Carpentaria Pilot Project ("Pilot Project") for the potential construction of midstream infrastructure to transport up to 25 terajoules (TJ) per day to market and Empire provides APA exclusive rights to become its midstream gas infrastructure partner under the Partnering Agreement.

The long-form agreements to be entered into would support the potential development of Empire's Pilot Project and staged development of multi-user, open-access infrastructure for the export of gas from the Beetaloo Sub-basin to Australian east coast markets subject to approvals by each party.

Comments from Managing Director Alex Underwood:

"APA, Australia's leading energy infrastructure business, has demonstrated its desire to connect the Beetaloo Basin to customers both domestic and international, underwriting Australia's energy security. This agreement is a result of the substantial progress in resource development Empire has achieved since the MOU, announced in October 2021."

"APA potentially funding the midstream gas infrastructure facilities for Empire's Carpentaria Pilot Project, reduces the capital requirement to Empire, enhancing project economics."

Empire is planning a staged development of midstream gas infrastructure with the following projects:

- Stage 1 (Pilot Project): early works activity for a project to facilitate the construction of gas gathering, gas processing, compression and associated midstream infrastructure to facilitate the Pilot Project targeted sales gas production rate of up to 25 TJ per day utilising the existing McArthur River Pipeline to Daly Waters and the McArthur River Mine.

Empire is targeting a final investment decision for the Pilot Project later this year for targeted first gas sales in H1 2025. The Early Works Agreement would envisage APA Group funding the Pilot Project midstream gas infrastructure facilities up to $5 million with further funding to potentially be provided for under another long-form agreement. This would materially reduce the capital requirement for Empire to commence commercial production; and

- Stage 2 & further Stages (Other Projects): early works activity for a project to facilitate the construction of a new Beetaloo Sub-basin pipeline to Australian East Coast markets.

The leading concept for the new pipeline will connect the Beetaloo to APA's existing Carpentaria Gas Pipeline ("CGP") between Mount Isa and Ballera (Queensland) to facilitate transportation of material volumes of gas from the Beetaloo Sub-basin to Australian East Coast markets. This solution has the capability of being expanded to meet growing market demand on the East Coast (in excess of 500 TJ/d). The initial agreement envisages APA Group funding the new pipeline subject to entering long-form agreements.

The Partnering Agreement will cover the broader and longer-term arrangements between the Parties beyond the Pilot Project subject to approval by each party.

The Partnering Agreement would also envisage Empire granting APA exclusive rights to develop and execute Empire's midstream gas infrastructure projects in exchange for the opportunity for Empire to become a foundation customer in any multi-user pipeline to export gas from Empire's Beetaloo Sub-basin assets.

About APA Group

APA is a leading Australian Securities Exchange (ASX) listed energy infrastructure business. APA own and/or manage and operate a diverse, $22 billion portfolio of gas, electricity, solar and wind assets. APA delivers approximately half of Australia's gas usage.

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.



Empire Energy Group Ltd
E: info@empiregp.net
T: +61-2-9251-1846
F: +61-2-9251-0244
WWW: www.empireenergygroup.net

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