Northern Territory Resource Report and Corporate Update
The prospective resource estimate was prepared by Netherland, Sewell & Associates, Inc. ("NSAI"), a worldwide leader of petroleum property analysis to industry, financial organizations and government agencies.
The results of the NSAI report have been summarised by Empire in the table below. A detailed summary of the NSAI prospective resource estimates can be found at Appendix A*.
Commenting on the results, Empire Managing Director, Alex Underwood said:
"The prospective resources assessed by NSAI are exciting, with a total best estimate prospective resource of 13.5 TCF. This is a substantial resource for a company of our size. The results of Empire's recent 2D seismic program have enabled NSAI to evaluate prospects in EP187 which have a best estimate prospective gas resource of over 2.3 TCF in the Velkerri Shale and 14 million barrels of oil equivalent in the liquids rich Kyalla Shale. This represents a near doubling of Empire's Velkerri Shale independent prospective resource estimate and is the first time that the Kyalla Shale has been independently assessed as a prospective resource in our properties. The plays evaluated by NSAI in our McArthur Basin properties have substantial resource potential. Our exploration activity to date is yielding strong results and we look forward to continuing to enhance the value of our properties through measured exploration investment."
Empire is working closely with the Northern Territory Government and the Northern Land Council to facilitate a recommencement of work program activities in the Northern Territory.
Empire has submitted a COVID-19 Management Plan to the Northern Territory Government for approval by the Chief Medical Officer. Once approved, the Plan would give Empire and its employees and contractors exemptions to border restrictions to allow Empire employees and contractors to resume activities in the field.
Empire continues discussions with drilling contractors regarding the drilling of Carpentaria-1 in EP187. Availability of rigs and oilfieild service companies in Australia has improved over the course of the year due to the material decline in oil and gas prices which has reduced industry activity.
In its most recent Quarterly Activities Report, Empire advised shareholders that it had applied for a forgivable loan under the US Paycheck Protection Program ("PPP") which forms part of the US Coronavirus Aid, Relief and Economic Security Act (the "CARES Act").
The PPP has been legislated by the US Federal Government to incentivise small and medium sized businesses to keep employees during the COVID-19 pandemic. Empire has 33 employees located in the United States.
The loan has been approved and Empire has received US$552,600 under the program.
PPP loans can be applied to business expenses including payroll, interest, rent and utilities.
Empire has placed the funds in a segregated account and it intends to use the funds for forgivable purposes.
Following receipt of the US PPP funding, Empire has a total of A$11.3m cash at bank. Of this, A$9.5 million is held in Australian dollars and US$1.1 million is held in US dollars.
*To view tables, please visit:
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