Empire Energy has announced a Beetaloo operations update. Carpentaria-2H flow testing complete following continued strong gas rates. Development planning for pilot project final investment decision continues. Multiple parties are expressing strong interest in purchasing Empire’s Beetaloo gas in both the pilot phase and full development phase.
Highlights
- Carpentaria-2H (“C-2H”) has produced a total of 323 Terajoules (“TJ”) (281 mmscf) over 127 days
- Gas composition has remained consistent with high calorific value and extremely low CO2
- This equates to a normalized rate of 2.75 TJ (2.4 mmscf) per day per 1,000 metres for the entire test period
- The post-soak 2023 IP30 is now confirmed at 3.5 TJ (3.0 mmscf) per day per 1,000 metres following updated gas composition analysis
- C-2H has been shut-in for availability as a future gas producer
- Carpentaria-3H (“C-3H”) will be reopened for flow testing once the soak period concludes
- Development planning for pilot project final investment decision continues. Multiple parties are expressing strong interest in purchasing Empire’s Beetaloo gas in both the pilot phase and full development phase
- NSAI updated resources report on track to be released prior to 30 May 2023 AGM
Comments from Managing Director Alex Underwood:
'We are pleased to share the continued strong gas flow rates achieved at C-2H as they provide further confidence that an economic development in EP187 may be achievable.
The cumulative production of 323 TJ over 127 days from C-2H would equate to over 1,000 TJ cumulative production for an equivalent 3km horizontal development well over the same period. This is despite the unoptimized nature of the C-2H well that has tested multiple completion methodologies. If we assumed a gas price of $10 / GJ, which is less than half the spot price at Wallumbilla on 22nd May 2023, on this basis an equivalent 3km development well could generate over $10 million in gross revenue (before royalties) over an equivalent first 127 days of commercial production without any further well optimization (see Appendix B for further details). Such a level of gross revenue so early in the life of development wells may support field level economics.
Following recent regulatory implementation by the NT Government giving the Beetaloo a ‘green light’ to move into commercial production, and an extremely tight domestic gas market, line of sight towards commercialisation is getting clearer by the day.'
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Source: Empire Energy
