Quarterly Activities Report
Sydney, Oct 30, 2023 AEST (ABN Newswire) - Empire Energy Group Ltd (
ASX:EEG) (EEGUF:OTCMKTS) report that the Carpentaria-3H ("C-3H) has been shut-in following completion of extended production testing. The 90-day initial production rate (IP90) achieved for C-3H was 3.1 TJ per day.
Carpentaria-2H and C-3H are now available to form part of the Carpentaria Pilot Project well inventory with the intention to tie into facility infrastructure for production.
APA will spend up to $5 million on Engineering and Design Concepts and may provide funding support for midstream gas infrastructure facilities associated with Empire's Carpentaria Pilot Project to transport up to 25 TJ per day to market.
Carpentaria Pilot Project is progressing towards a final investment decision ("FID").
Cash at the end of the Quarter was $15.1 million and $29.3 million at the date of this report following receipt of a total Research and Development Tax Offset of $15.6 million after Quarter-end.
Comments from Managing Director Alex Underwood:
"The Empire team has had another busy and productive Quarter focused on flow testing at C-3H and moving towards FID on the EP187 pilot project.
We carried out additional flow testing on C-3H with a pleasing improvement in productivity post-shut in. The technical team is carrying out post-flow testing analysis that continues to build our understanding of how to optimally fracture stimulate the Middle Velkerri B as we move towards the production phase. We are confident that this learning will drive increasing productivity in future wells.
The entire Empire team continues to make great progress towards FID on the pilot project. The initial development plan is well advanced, with the number and location of development wells being delineated, and capital expenditure estimates are maturing.
Empire has a range of funding options at its disposal and all are being progressed. With 100% working interest in all of our properties and no private royalties sold, we have optionality to potentially sell down an asset level interest to an industry player, and conversations with potential JV partners have commenced.
We have started a formal gas marketing process. With extreme tightness in NT and East Coast gas markets continuing as existing sources of supply decline, we are well placed to sell pilot project gas volumes on attractive terms.
The receipt of a $15.6 million R&D tax refund last week, taking our cash balance to over $29 million currently, leaves Empire well-funded to carry out all of these activities as we progress towards an FID decision in the coming months."
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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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