Empire Energy advises that Netherland, Sewell & Associates, Inc. (“NSAI”) has prepared an updated independent resource report for Empire’s 100% owned and operated EP187 tenement located in the Beetaloo Sub-basin, Northern Territory, utilising the technical results of the Carpentaria-1 drilling program. 

Highlights

• Empire’s best estimate prospective gas resource for EP187 has increased by 47% to 3.5 TCF 
• Empire has booked a maiden best estimate prospective condensate resource of 27 million barrels
• Empire has booked a maiden best estimate contingent gas resource of 41 BCF in the immediate vicinity of the Carpentaria-1 well location
• Empire has received Northern Territory Government approvals to carry out hydraulic stimulation and flow testing of the vertical Carpentaria-1 well 
• Tendering for the hydraulic stimulation and flow testing is well advanced, with operations expected to commence in Q2 2021 
• The program will be fully funded from existing cash at bank
• Current cash balance is A$12.3 million

Managing Director Alex Underwood commented:
The NSAI report, which incorporated the results of our drilling program, updated petrophysical understanding gained from the W.D. Von Gonten & Co core analysis, and comparison of our results to key wells drilled by other operators across the Beetaloo Sub-basin, demonstrates that our EP187 contains significant resource potential, particularly for a company of our size. The increased prospective gas resource volumes, maiden assessment of valuable liquid hydrocarbons, and maiden booking of contingent gas resources in the vicinity of Carpentaria-1 validate the decision we made to drill Carpentaria-1 last year amid challenging economic conditions.

Since that time, market conditions for the energy sector have improved materially, and the important role of gas in the energy transition has been a focus of the Australian Government which is actively supporting the development of the Beetaloo Sub-basin.

We look forward to commencing the fully funded and approved flow testing program at Carpentaria-1 to assess which zones within the Velkerri Formation are likely to provide the optimal flow rates and gas / liquids contributions.

While we prepare for this program, we are also continuing to advance opportunities to commence commercial production utilising existing infrastructure and markets. 

Updated NSAI Report

The independent resource assessment for Empire’s 100% owned and operated EP187 permit was prepared by NSAI, a worldwide leader of petroleum property analysis to industry, financial organisations and government agencies.

Following completion of the evaluation program of the Carpentaria-1 well core and wireline data by W. D. Von Gonten & Co. in Houston, Texas, NSAI has incorporated the analyses and interpretations into its independent resource assessment for Empire’s EP187 permit.

The reservoir properties and shale pay thickness exceeded pre-drill expectations for Carpentaria-1, which has driven material increases in assessed gas and now condensate resources.

Empire’s shales in the target Velkerri Formation are both thicker and contain more liquid hydrocarbons than expected prior to drilling. Furthermore, an additional interval, which we are referring to as the Intra A-B, was identified immediately adjacent to the target Velkerri Formation A and B shales.

NSAI has assessed a best estimate condensate (C5 and greater) prospective resource of 27 million barrels. Assessment of Natural Gas Liquids (C2 to C4) will require further gas analysis (post-flow testing) and those volumes are included in the best estimate prospective gas resource for the purpose of the updated independent assessment.

NSAI’s analysis was restricted to Empire’s current operations in EP187 and did not incorporate further assessment of Empire’s northern properties targeting the Barney Creek or other McArthur Basin shale targets. The Kyalla Shale was deemed to be too shallow or not present in EP187 and so has been reduced to zero for prospective resource assessment. 

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