Perth, April 24, 2008 AEST (ABN Newswire) - Empire Oil & Gas (ASX: EGO)(PINK:EOLGF) announce the commencement date for drilling "back to back wells" Lake MacLeod-1 and Star Finch-1 have been slightly delayed due to extreme rainfall and flooding in the Lake MacLeod area in April 2008 preventing the commencement of operations. In excess of 508mm (20") of rainfall fell within a 48 hour period resulting in road closures on main roads in the region.
A recent airborne survey was made over the two drilling locations on 18 April 2008. Both locations are drying out with the commencement of siteworks to commence in May 2008 and drilling at the earliest weather conditions will allow on the access roads.
A meeting was held with the Native Title Claimant Group, the Gnulli, on 18 April 2008 to advise them of the drilling programmes to be conducted within their Native Title Claim area.
The Company is currently conducting site works for the Bee-Eater-1 and Rainbow-1 wells in EP 359 and EP 435 in the Exmouth Sub Basin prior to mobilising earthworks equipment and the drilling camp to Carnarvon.
The Company has entered into contractual terms to drill all the Carnarvon Basin wells in 2008 with Drilling Contractors of Australia using their Rig 7. DCA Rig 7 has been mobilised to Carnarvon. Tubulars and wellhead equipment is at the Company's Exmouth depot.
The Company will commence drilling both wells as soon as conditions allow the programme to be conducted safely estimated to be June 2008. It is now likely that the Star Finch-1 well will be drilled first with the Lake MacLeod-1 well to immediately follow.
Assuming Star Finch is gas bearing with a 5 metre oil column, estimated potential recoverable reserves are of the order of 50 billion feet of gas and 25 million barrels of oil if hydrocarbons are present and the structure filled to its spill point.
Empire recognises that there are similar Star Finch type structures within all the exploration permits EP 460, EP 461 and EP 439 that can be followed up upon a Star Finch discovery.
Lake MacLeod is estimated to have up to 150 million barrels of recoverable oil, if oil is present and the structure is filled to its maximum possible spill point.
The participants in the wells are:
---------------------------------------------------------------Company EP 439 and EP 461 EP 460----------------------------------------------------------------Empire Oil & Gas N.L. 30.356% 22.856%(Rough Range Oil Pty Ltd)Longreach Oil Limited 9.352% 9.352%Indigo Oil Pty Ltd 4.676% 4.676%Falcore Pty Ltd 2.596% 2.596%Vigilant Oil Pty Ltd 0.52% 0.52%Jurassica Oil & Gas Plc 35.00% 40.00%Black Fire Energy Limited 7.50% 0.00%DVM International Limited 10.00% 20.00%
Contact
Mr Craig Marshall
Managing Director
TEL: +61-8-6389-2687
FAX: +61-8-9386-6812
EMAIL: cmarshall@empireoil.com.au
| ||
|
