Gas Infrastructure MOU with APA Group
APA and Empire have executed the MOU to explore opportunities to enter appropriate development and commercial agreements for APA to build, own and operate gathering, production, processing, and transportation infrastructure for the movement of gas and liquids from Empire's Northern Territory assets.
APA and Empire will also promote a 'common user' model for development of the Beetaloo Sub-basin infrastructure to drive economies of scale benefits and lower cost per unit charges. In addition, APA proposes a staged and incremental development approach for the Beetaloo Sub-basin, thereby leveraging its network to reduce the required initial capital investment and align the pace of upstream development.
The MOU does not restrict Empire from engaging, negotiating and entering into agreements for use of the McArthur River Gas Pipeline.
APA's Northern Strategy envisages expansion of the Amadeus Gas Pipeline through additional gas compression augmenting the Northern Territory Government's plans for development of gas supported manufacturing industry and LNG export expansion at Darwin.
APA's Eastern Strategy includes development of a greenfield pipeline between the Amadeus Gas Pipeline and Carpentaria Gas Pipeline at Mount Isa to bring gas to southern markets to help address predicted future shortfalls in both domestic market and LNG export capacity at Gladstone. The proposed new Beetaloo pipeline will become part of the existing APA gas distribution network and be the most capital efficient model for connecting the Beetaloo Sub-basin to market.
APA will outline its Beetaloo infrastructure plans later today at the South East Asia Australia Offshore & Onshore Conference ("SEAAOC").
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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