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Empire Energy Group Ltd (EEG.AX) Quarterly Activities Report
Sydney, Australia, July 30, 2021 - (ABN Newswire) - The second Quarter has been productive for Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF). The Company continues to progress towards its objective to achieve commercial production and cash flows.
Major highlights of the Quarter:
- Transformational acquisition of Pangaea and EMG NT, Beetaloo Sub-basin assets, nearly doubling Empire's NT acreage focused on the highly prospective Beetaloo Sub-basin
- Post-acquisition, Empire's best estimate Prospective Resources (2U) will total ~47 Tcfe comprising 42 Tcf gas and 791 MMbbls liquids (condensate and oil) while 2C Contingent Resources will be 220 Bcfe comprising 199 BCF gas and 3.5 MMbbls of liquids
- The Board and management team of Empire has been strengthened with Mr Louis Rozman completing his first full Quarter as a Director and Mr Paul Fudge and Ms Jacqui Clarke (his alternate) will join the Board once the acquisition completes
- The Carpentaria-1 well targeting the Velkerri shales was successfully fractured stimulated. Following completion, extended production testing produced pleasing results at a peak rate of >1.6 mmcf / day, an average flow rate of 0.25 mmcf / day over a 17-day test period during which the well was continuing to dewater, with a final rate of 0.25 mmcf / day
- After Quarter end, approvals were received for three grants totaling up to $21 million under the Beetaloo Cooperative Drilling Program - funds will be applied to up to three horizontal wells on EP187
- Empire raised new equity capital of ~$37.2 million (gross) at $0.30 per Empire share
- The Company ended the Quarter with $41.9 million in cash
- The Carpentaria-1 well was shut-in on 16th July 2021 to comply with COVID-19 operating constraints - the technical team intends to recommence production testing when operating conditions allow
- Preparations for the drilling of Empire's first horizontal well in EP187 are well advanced
- Empire's US business executed US$120,000 in wind and solar project land leasing contracts over its New York State oil and gas leases with negotiations for further renewable energy project leasing opportunities developing
- Empire and Macquarie Bank executed amendments to the Credit Facility, removing two financial covenants: the interest coverage ratio and 1P PV10 ratio. Repayments to the Credit Facility totaled US$412,500 during the Quarter
- The General Meeting to consider the acquisition of the Pangaea and EMG NT assets will be held at 2.00pm (AEST) on Tuesday, 3rd August 2021
- Gas prices in the United States, Australia and Asia have surged to multi-year highs
To view the full quarterly report, please visit:
About Empire Energy Group Ltd:
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) holds over 14.5 million acres of highly prospective exploration tenements in the McArthur and Beetaloo Basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds 80% has very considerable conventional and unconventional hydrocarbon potential. The Beetaloo sub-Basin, in which Empire holds a substantial position, has independently assessed world class hydrocarbon volumes in place with a major ramp up in industry activity underway to appraise substantial discoveries already made by major Australian oil and gas operators.
Empire Energy is an experienced conventional oil and gas producer with operations in the Appalachia region (New York and Pennsylvania). Empire has been successfully developing and producing oil and gas since 2006.
Empire Energy Group Ltd
Empire Energy Group Ltd
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