Quarterly Activities Report
Sydney, July 30, 2021 AEST (ABN Newswire) - The second Quarter has been productive for Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS). The Company continues to progress towards its objective to achieve commercial production and cash flows.
Major highlights of the Quarter:
- Transformational acquisition of Pangaea and EMG NT, Beetaloo Sub-basin assets, nearly doubling Empire's NT acreage focused on the highly prospective Beetaloo Sub-basin
- Post-acquisition, Empire's best estimate Prospective Resources (2U) will total ~47 Tcfe comprising 42 Tcf gas and 791 MMbbls liquids (condensate and oil) while 2C Contingent Resources will be 220 Bcfe comprising 199 BCF gas and 3.5 MMbbls of liquids
- The Board and management team of Empire has been strengthened with Mr Louis Rozman completing his first full Quarter as a Director and Mr Paul Fudge and Ms Jacqui Clarke (his alternate) will join the Board once the acquisition completes
- The Carpentaria-1 well targeting the Velkerri shales was successfully fractured stimulated. Following completion, extended production testing produced pleasing results at a peak rate of >1.6 mmcf / day, an average flow rate of 0.25 mmcf / day over a 17-day test period during which the well was continuing to dewater, with a final rate of 0.25 mmcf / day
- After Quarter end, approvals were received for three grants totaling up to $21 million under the Beetaloo Cooperative Drilling Program - funds will be applied to up to three horizontal wells on EP187
- Empire raised new equity capital of ~$37.2 million (gross) at $0.30 per Empire share
- The Company ended the Quarter with $41.9 million in cash
Other highlights:
- The Carpentaria-1 well was shut-in on 16th July 2021 to comply with COVID-19 operating constraints - the technical team intends to recommence production testing when operating conditions allow
- Preparations for the drilling of Empire's first horizontal well in EP187 are well advanced
- Empire's US business executed US$120,000 in wind and solar project land leasing contracts over its New York State oil and gas leases with negotiations for further renewable energy project leasing opportunities developing
- Empire and Macquarie Bank executed amendments to the Credit Facility, removing two financial covenants: the interest coverage ratio and 1P PV10 ratio. Repayments to the Credit Facility totaled US$412,500 during the Quarter
- The General Meeting to consider the acquisition of the Pangaea and EMG NT assets will be held at 2.00pm (AEST) on Tuesday, 3rd August 2021
- Gas prices in the United States, Australia and Asia have surged to multi-year highs
To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/CE211V0Q
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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