Empire Energy is planning to drill the Carpentaria-5H pilot development well in the Beetaloo Basin in November. C-5H will be Empire’s longest drilled and stimulated horizontal shale well and will target a ~3,000 metre horizontal section with ~60 fracture stimulation stages.
- Planning for Carpentaria-5H 'C-5H') drilling, stimulation and tie-in continues in anticipation of November commencement
- Ensign Rig 965 contracted to drill and Halliburton contracted to fracture stimulate C-5H (see Empire ASX release dated 10 September 2024)
- Long lead items including drill casing and wellhead have been secured
- Empire signed a 10 year binding Gas Sales Agreement with the Northern Territory Government to supply 25TJ per day from Carpentaria pilot project commencing in 2025, plus an additional 10 TJ+ per day 'Option Supply'
- Empire is focused on delivering final investment decision for the Carpentaria Pilot Project, and commencement of gas deliveries from mid-2025, subject to receipt of all regulatory approvals
- Research and Development Tax Offset of $4.0 million in cash received after Quarter-end
- Cash at the end of the Quarter was $39.8 million
Comments from Managing Director Alex Underwood:
'During the Quarter, the Empire team has been focused on preparation for delivering the Carpentaria-5H pilot development well later this year and the installation of the Carpentaria Gas Plant in 2025. We have executed drilling and stimulation contracts with leading service providers and the long-lead items have been ordered.
We have all approvals in place for the drilling and stimulation of Carpentaria-5H and we are progressing approvals for the commencement of gas sales through the plant into the McArthur River Gas Pipeline with the Northern Territory Government and the Northern Land Council on behalf of traditional owners.
The financing process previously disclosed to shareholders is proceeding well. We have selected a preferred financier and will update shareholders once the process reaches its conclusion.
Following consultation with traditional owners in August, we are pleased that some of the traditional owners are working on our Carpentaria-5H well pad site as we prepare for the upcoming work program. This is consistent with our strategy to maximise the benefits of our activities for local landholders and communities.
We are grateful to the newly elected NT Government for its strong support for Empire Energy and the Beetaloo Basin as a whole, a key pillar of its economic growth plans for the Territory.
We look forward to updating shareholders shortly when we commence drilling Carpentaria-5H.'
Carpentaria Pilot Project Update
During the Quarter, Empire Energy Group undertook planning, contracting and civil work for the Carpentaria-5H ('C-5H') well, to be drilled during November 2024. The civil work has since been substantially completed. C-5H will be drilled from the same well pad and will target the same Velkerri B Shale as Carpentaria-2H ('C-2H') and Carpentaria-3H ('C-3H'). These three wells will form the initial part of the Carpentaria Pilot Project.
C-5H will be Empire’s longest drilled and stimulated horizontal shale well and will target a ~3,000 metre horizontal section with ~60 fracture stimulation stages. The C-5H fracture stimulation is expected to commence shortly after rig release. Unlike the previous wells, C-5H will be completed with 5 ½” casing and stimulation horsepower significantly increased to maximise gas productivity. C-5H will integrate the best completion practices from North American shale analogues and incorporate learnings from C-2H and C-3H.
The goals of C-5H include executing a development scale well for the Carpentaria Pilot Project, optimizing fracture stimulation design to achieve higher productivity, and conducting a long-term production test to develop a Carpentaria type curve for long laterals for full-field development planning.
Empire has executed a drilling contract with Ensign Australia Pty Limited for drilling and Halliburton Australia Pty Limited for hydraulic stimulation of C-5H.
Click here for full announcement
Source: Empire Energy
