Quarterly Activities Report
Sydney, May 3, 2021 AEST (ABN Newswire) - During Q1, Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS) announced a 47% upgrade to its best estimate Prospective Gas Resource to 3.5 TCF (47% increase) and a maiden best estimate Contingent Gas Resource of 41 BCF within EP187. Empire also made material progress during the quarter planning for an active field season this year.
After quarter end, the Company agreed, subject to customary conditions precedent, to acquire the Beetaloo Basin properties of Pangaea Resources, making Empire one of the largest acreage holders in the Greater McArthur Basin and Beetaloo Sub-basin. Key highlights include:
- Empire's best estimate Prospective Resources have nearly trebled to ~41 TCFe comprising 37 TCF gas and 657 MMbbls liquids (condensate and oil)
- 2C Contingent Resources have increased by more than 350% comprising 171 BCF gas and 2.9 MMbbls of liquids
- The Energy Minerals Group ("EMG"), Pangaea's joint venture partner in the acquired acreage, has elected to exercise its Tag Along Right to divest its 17.5% interest in the Pangaea tenements to Empire on the same terms as Pangaea completing Empire's 100% buy out. The EMG acquisition will further increase Empire's prospective and contingent petroleum resources
- $30 million (gross) was raised in a two-tranche placement at $0.30 per share to fund the acquisition and further work program activities including horizontal appraisal drilling
- Empire has also launched a Share Purchase Plan which closes on 7th May 2021
- An Environment Management Plan for up to 7 horizontal wells (including Carpentaria-1 horizontal section) on up to six new well pads and 2D infill seismic on EP187 has been accepted by the NT Government for final assessment
Highlights of the quarter:
- Mr Louis Rozman appointed a Non-Executive Director of the Company taking the seat of Mr John Gerahty who has retired from the Board
- NSAI certified a best estimate prospective resource for EP187 of 3.5 TCF of gas and 27 MMbbls of condensate and Empire's maiden best estimate contingent resource of 41 BCF gas in the immediate vicinity of the Carpentaria-1 well location in EP187
- The Company ended the Quarter with $11.4 million in cash. Current cash balance is $22.4 million following settlement of Tranche 1 of the placement
Comments from Managing Director Alex Underwood:
Empire is entering an exciting new phase following the transformational acquisition of Pangaea Resources and our work programs focused on leading the Beetaloo Basin into production. The acquisition of Pangaea and EMG's Northern Territory properties represents a significant milestone in the history of Empire and strengthens our rapid commercialisation plans. Holding material acreage on both sides of the Beetaloo provides drilling location optionality and presents the opportunity to supply gas to both the Amadeus and McArthur River Mine Gas Pipelines. We look forward to being back in the field now that the Wet Season is reaching its conclusion with expected operations to begin in early June. We look forward to updating shareholders as on-ground appraisal work progresses.
I would like to thank our team at Empire including our operational team at inGauge Energy for their achievements over the last Quarter which are detailed in this report. I would also like to thank our new and existing shareholders for their support in our recent capital raising and I encourage shareholders to participate in the Share Purchase Plan.
To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/BF6DD665
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.
| ||
|
