Quarterly Activities Report
Sydney, Oct 30, 2020 AEST (ABN Newswire) - The Quarter ending 30th September 2020 has been productive for Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS). The Company commenced drilling Carpentaria-1, its first well in the highly prospective and increasingly active Beetaloo Sub-basin of the Northern Territory. The results of Carpentaria-1 are positive for the future of the Company. Empire looks forward to providing further updates to shareholders as our analysis and understanding of the well results develops.
Highlights of Q3 2020:
- Empire intersected liquids rich gas across a thick sequence of the Velkerri Formation in its 100% owned Carpentaria-1 well. The results materially exceeded pre-drill expectations
- Major operators in the Beetaloo Sub-basin continue to generate strong operational results. Santos flow tested the Tanumbirini-1 vertical well which 'significantly exceeded expectations' with strong flow rates and Origin drilled and hydraulically stimulated the Kyalla-117 horizontal well with flow test results expected in Q4 2020
- Empire raised ~A$18.1 million following a successful A$10 million placement and A$8.1 million option conversion proceeds during the quarter
- Empire Directors exercised A$1.9 million of options bringing their total investments to A$6.1 million since 2018
- The Northern Territory elections returned the Labor Government to power. The industry now has strong bipartisan Government support in the Northern Territory and Federal Government support
- A further increase in activity in the Beetaloo Sub-basin is anticipated in 2021
- The Company ended the Quarter with A$21m cash at bank
Comments from Managing Director Alex Underwood: It has been a busy and successful Quarter for the Empire team. We commenced drilling Carpentaria-1, only the second well drilled in the Beetaloo under the new regulatory framework. The results have materially exceeded our expectations both in terms of the thickness of the shales and the presence of higher value liquids. Our intersection of liquids rich gas is a new paradigm for this major emerging basin. These results are likely to materially impact our resource assessments which had previously assumed that we would encounter dry gas and give us greater optionality to consider early commercialisation strategies. Our neighbours continue to generate strong results and are planning further material investments to continue appraising major discoveries in the year ahead. This activity enhances our understanding of our own properties and how to add value to them. These results and our own are attracting wide attention for the Beetaloo Basin and play into the Federal Government's Gas Fired Recovery strategy and its promotion of gas for energy and feedstock material as an industrial foundation for Australia's economy. With support for our industry now firmly entrenched at the Federal and Northern Territory Government levels, strong forecast Australian and Asian gas market fundamentals and our balance sheet strengthened through recent capital issuance, the platform for further growth is well established as we move into the appraisal phase in EP187 and prepare for exploration of our Northern properties.
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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.
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