• 2.6 million standard cubic feet (mmscf) per day sustained initial flow rate achieved over the first 91 hours of flow testing with minimal decline in gas flow rate over this period
• Flow rate was achieved from 927m effective stimulated horizontal length indicating a normalized rate of 2.8 mmscf per day per 1,000m of horizontal section
• 27.8% of injected fluids recovered while strong gas rates sustained without any artificial lift required (e.g. no nitrogen injection) demonstrating strong reservoir drive
• These early results provide Empire management with materially enhanced confidence that the project can be commercialized
• Flow testing is continuing. Data being collected and analysed by Empire’s technical team will be incorporated into the completion design for the upcoming Carpentaria-3H

Managing Director Alex Underwood, commented:
“This is an outstanding result for Empire and our shareholders, and a historic moment in the advancement of the Beetaloo Basin. To our knowledge, this is the highest sustained gas flow rate of any well drilled in the Beetaloo Basin to date.

As previously announced, the primary goal of the Carpentaria-2H stimulation and flow testing program is not to achieve maximum flow rates but rather to assess which of the four fluid systems trialed (crosslink, HVFR, hybrid and slickwater) is likely to provide the best production performance in the Beetaloo Basin’s shales and to optimise our completion methodology. Our successful stimulation of 21 stages using these various fluid systems and the placement of the entire planned quantity of proppant in those stages was a crucial first step.

Since then, strong and stable gas production rates, coupled with slowing water production, have given the Empire team enhanced confidence that we are rapidly approaching demonstration that the project is commercially viable, particularly given the significant cost advantage compared to other parts of the
basin.

We don’t yet know which of the 21 stages is giving us the strongest production rates, and therefore which fluid system will drive optimal production and cost performance in development scenarios. We will gather and analyse this data in the coming weeks and months. However, our preliminary view is that it is highly likely that some stages are generating more production than others.

These learnings, to be incorporated into our completion design for Carpentaria-3H, are likely to drive even stronger production rates in that well and future wells, consistent with the learning curves that were achieved across the major US shale basins.

Thank you to our team and shareholders for your support. I look forward to providing further updates as C-2H flow testing continues and we commence the next phases of the 2022 program.”

KeyFacts Energy: Empire Energy Australia country profile