- Successful 2022 Beetaloo work program has resulted in the certification of an LNG scale resource as independently assessed by Netherland, Sewell & Associates, Inc. ('NSAI') for Empire’s wholly owned and operated EP187:
- 270% increase in 2C Contingent Resources to 1,739 PJ representing an average Estimated Ultimate Recovery ('EUR') per well of 7.9 PJ
- 217% increase in 1C Contingent Resources to 304 PJ representing an average EUR per well of 6.2 PJ
- 129% increase in 3C Contingent Resources to 3,507 PJ representing an average EUR per well of 9.3 PJ
- Due to the high calorific value of the Empire’s EP187 gas, NSAI assessed sales volumes in PJ have a higher energy content than equivalent dry gas volumes.
Empire Energy has announced a major upgrade to its independently assessed EP187 Contingent and Prospective Resources. The resources estimate for Empire’s wholly owned and operated EP187 permit has been prepared by Netherland, Sewell & Associates, Inc. ('NSAI'), a worldwide leader of petroleum property analysis to industry, financial organisations and government agencies.
NSAI has assessed EP187 Contingent and Prospective Resources in Petajoules ('PJ'), as well as Billion Cubic Feet ('BCF'), reflecting the high calorific value of the produced gas as demonstrated by each of the three wells which have been production tested in EP187. The high calorific value of Empire’s raw wellhead gas has resulted in a conversion factor of 1.15 TJ per mmscf, as opposed to 1.055TJ per mmscf for dry gas (i.e. methane only). This may allow Empire to attract a price premium for its gas in gas sales scenarios.
Comments from Managing Director Alex Underwood:
'The Empire team is delighted to share these outstanding results with shareholders. The volumes delineated in EP187 represent a nationally significant resource of low CO2 gas. Warnings abound from multiple sources that Australia faces material gas shortfalls in years ahead, a view that I share given the enduring role of gas. The Beetaloo and more particularly Empire’s resource has the potential to service domestic demand gaps and international sales via LNG. At an assumed gas contract price of $10 / GJ, each development well in EP187 could produce between $62 million and $95 million of revenue over its life, compared to a development cost of ~$20 million in the pilot phase and or ~$15 million in larger development scenarios. NSAI has identified over 200 2C drilling locations, representing LNG scale development potential.
Following the recent green light from the NT Government to move into production, the Empire team is progressing towards development drilling and cash flow. Our current capital resources allow us to proceed to a final investment decision on the pilot project this year without raising any further capital in the near term. This will allow the team to focus on further value accretive work including field development planning, indigenous consultation, regulatory approvals and gas sales negotiations.'
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Source: Empire Energy
