Half Yearly Report and Accounts
- To assess and prove the depth and thickness of the productive target shales (Kyalla and Velkerri) in Empire's EP187 permit;
- To understand rock properties, hydrocarbon content, formation permeability and reservoir pressure as they relate to the ability of the shales to produce;
- To gather data used for hydraulic stimulation planning and execution;
- To identify 'high grade' sections of these target shale formations, for vertical hydraulic stimulation and production testing after the wet season in 2021. Also to assist in the design of horizontal wells for extended production testing; and
- To refine the seismic interpretation and further determine prospective hydrocarbon resource estimates.
Our neighbours Origin Energy Limited and Santos Limited remain active in the onshore Northern Territory and have made material progress during the half-year considering the impact of COVID 19. We await their future exploration results with interest. Key events from our neighbours have included:
1. During April 2020, Origin announced it had agreed with joint venture partner Falcon Oil & Gas ("Falcon") to increase its interest in the Beetaloo Basin joint venture by 7.5% in exchange for increasing its share of Falcon's share of costs by A$25 million over the coming years. The transaction implies a valuation of A$333 million for the Origin / Falcon joint venture. The joint venture has also agreed to increase its gross cost-cap to A$263.8 million, and a vote of confidence in the Beetaloo Basin.
2. Operationally, Origin has indicated that its exploration and appraisal activities in the Beetaloo are progressing well and results from its Kyalla 117 well have demonstrated productive reservoir characteristics, and continuous gas shows. Following a COVID-19 pause, Origin will recommence field operations in Q3/Q4 2020 with the hydraulic fracturing and production flow test of the Kyalla-117 horizontal well.
3. Santos has confirmed a successful gas discovery at the Tanumbirini-1 well in EP161 in the adjoining permit to Empire's EP187. Gas flow rates of over 1.2mmscf/d were recorded from the vertical well. . Following production flow testing, Santos booked a maiden contingent resource in the McArthur Basin of 176PJ (gross).
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About Empire Energy Group Ltd
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) holds over 14.5 million acres of highly prospective exploration tenements in the McArthur and Beetaloo Basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds 80% has very considerable conventional and unconventional hydrocarbon potential. The Beetaloo sub-Basin, in which Empire holds a substantial position, has independently assessed world class hydrocarbon volumes in place with a major ramp up in industry activity underway to appraise substantial discoveries already made by major Australian oil and gas operators.
Empire Energy is an experienced conventional oil and gas producer with operations in the Appalachia region (New York and Pennsylvania). Empire has been successfully developing and producing oil and gas since 2006.
Empire Energy Group Ltd