Perth, June 17, 2008 (ABN Newswire) - Empire Oil & Gas N.L. (ASX:EGO)(PINK:EOLGF) is pleased to provide an update of the drilling of the Star Finch-1 well located near Carnarvon, Western Australia.
The Empire Oil & Gas N.L. drilling camp has been mobilized to the Star Finch-1 wellsite. The Star Finch-1 wellsite and access roads have been built to the specifications for DCA Rig 7 and other service company equipment, necessary to conduct petroleum drilling operations. The Company has near all equipment on site to commence drilling at Star Finch-1 with the remaining drilling equipment being mobilised by road trains to site. The Company will drill the surface hole section and cement the 9 5/8" (244mm) casing and pressure testing the blow out prevention equipment prior to mobilising all service company personnel to site and then drill ahead to reservoir objective Birdrong Sandstone with 81/2" hole. This will be a 24-hour drilling operation.
The participants in the well are:
--------------------------------
Company Star Finch-1
EP 460
--------------------------------
Empire Oil & Gas N.L. 22.856%
(Rough Range Oil Pty Ltd)
Longreach Oil Limited 9.352%
Indigo Oil Pty Ltd 4.676%
Falcore Pty Ltd 2.596%
Vigilant Oil Pty Ltd 0.52%
Jurassica Oil & Gas Plc 40.00%
DVM International Limited 20.00%
--------------------------------
As the Company is drilling Star Finch-1 and Lake MacLeod-1 wells "back to back", substantial pre-drilling and logistical work must be completed to drill the wells safely and pursuant to good oilfield practice.
The Company will announce the commencement of drilling upon being satisfied that all personnel have been presented and understand the Company's safety procedures and are fully inducted in the appropriate drilling procedures to drill the well according to the Star Finch-1 drilling programme approved by the Department of Industry and Resources.
The Star Finch-1 Prospect covers a large area of 3,000 hectares and potential recoverable reserves are estimated to be of the order of 50 billion cubic feet of gas or 25 million barrels of oil assuming a 5 metre oil leg. The Star Finch Prospect demonstrated bright seismic anomalies over the mapped closure. Bright seismic anomalies have been a successful indication in many cases for natural gas entrapment in the Carnarvon Basin.
Empire looks forward to releasing the commencement of drilling operations (spud) at Star Finch-1.
