Highlights:

• The Federal Government has approved up to $21 million in grant funding to Empire under the Beetaloo Cooperative Drilling Program
• The funding will support the drilling and flow testing of up to 3 fracture stimulated horizontal appraisal wells in Empire’s 100% owned EP187 tenement, additional seismic acquisition and other associated costs
• Empire’s planning for its first fracture stimulated horizontal appraisal well later this year is well advanced and fully funded
• Empire expects to commence drilling its first horizontal appraisal well, which will benefit from the grant funding, in Q4 this year (subject to NT Government approvals which are well advanced)
• The program will continue under the mutually agreed exploration agreement with the full and informed consent of traditional owners

Managing Director Alex Underwood commented:
“We welcome the award of Federal Government grants to support our planned exploration and appraisal in the Beetaloo Sub-basin. This funding will accelerate our activities and enable a rapid commercialisation strategy.

Our planning for further seismic acquisition and the drilling and completion of our first horizontal well, which will benefit from this grant funding, is progressing well. The NT Government approval process is well advanced and our subsurface and operational teams are carrying out preparatory engineering and drilling design works to prepare for this next phase of our field programs.

Critical technical data gained from the ongoing flow testing of our vertical Carpentaria-1 will soon be analysed to assess gas composition (dry gas vs liquid hydrocarbons) and zonal contribution (i.e. how each of the four zones we have fracture stimulated in the Middle Velkerri shale is contributing to total production).

This data will inform our approach to drilling the horizontal well in Q4 2021, particularly which zone to land the horizontal section in, and how to fracture stimulate that well to maximise production.”

About the Beetaloo Cooperative Drilling Program

The Beetaloo Cooperative Drilling Program was announced by the Australian Government earlier this year as part of its Gas-fired Recovery Strategy.

The Program has been implemented to encourage explorers to accelerate their work programs with a view to accelerating initial commercial production from the Beetaloo Subbasin. This would increase gas supply for Australian households and businesses.

The Program provides for $50 million of funding towards exploration activity that is carried out by the end of 2022. The maximum amount of grant funding under the Program is $7.5 million per well, capped at 25% of the cost of each well and three wells per venture. Activities that support drilling such as seismic acquisition and flow testing are eligible under the Program.

Empire is the first company to have received approvals for grant funding under the Program. 

KeyFacts Energy: Empire Energy Australia country profile