Empire Energy today provides an update on the results of its formation evaluation program incorporating lab analysis recently received from W. D. Von Gonten & Co (“WDVG”), and to outline the implications for resource estimates and add details for Empire’s forward work programs. 

Core Analysis Results

WDVG has now completed a series of laboratory tests on the core samples across the Middle Velkerri Shale sequences taken from Empire’s recently drilled Carpentaria-1 well.

The results confirm that the Middle Velkerri Shale targets in Empire’s EP187 have world class-rock characteristics and compare favourably to the premier US shale basins.

Porosity, hydrocarbon saturation, non-clay component and total organic carbon all compare favourably, and the thermal maturity levels estimated demonstrate strong potential for liquids-rich gas production, particularly in the shallower zones. The target formation thicknesses measured in Carpentaria-1 were large compared to the major US shale plays and comparable to the Velkerri target shale thickness in the Tanumbirini-1 well drilled by Santos in the neighbouring tenement.

The analyses focused on the Middle Velkerri A, Intra A/B, B and C shales, the zones Empire’s technical team assess as having the greatest potential for commercial gas and liquids flows.

A wider array of tests was done than initially anticipated, to allow Empire’s technical team to better understand the gas and liquid hydrocarbon content of the core samples and the corresponding rock properties.

Empire’s technical team continues to analyse these results and incorporate them into its developing geotechnical model of the Middle Velkerri Shale within EP187. 

Updated Resource Assessment

The core results are being collated with the downhole data gathered in the logging of Carpentaria-1 to feed into resource estimates for EP187.

Netherland, Sewell & Associates, Inc. (“NSAI”) has been engaged to generate an updated independent prospective resource estimate for EP187 incorporating all of these results.

Empire expects to update shareholders on the results of NSAI’s assessment later in Q1 2021. 

2021 Work Program

The NT regulatory approval process for the hydraulic stimulation and flow testing of Carpentaria-1 across numerous target zones of the Middle Velkerri Shale is progressing well, with final approvals expected later in Q1 2021. 

Empire has also started the tendering process for the program and discussions are underway with several services companies. Shareholders will be advised as preferred contractors are selected. 

Carpentaria-1 Core Results and Operations Update

Detailed technical analysis using the full results of the Carpentaria-1 formation evaluation program to assess the optimal fracture stimulation and flow testing design is underway, and that program will test Empire’s thesis that the Middle Velkerri Shale in EP187 can
produce commercial hydrocarbons.

Empire presently anticipates commencing the fracture stimulation and flow testing program in Q2 2021. The program will be funded from existing cash at bank. 

KeyFacts Energy: Empire Energy Australia country profile