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Empire Energy Group Ltd (EEG.AX) Strong Carpentaria-1 Flow Rates
Sydney, Australia, June 28, 2021 - (ABN Newswire) - Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF) is pleased to provide shareholders with an update regarding the ongoing flow testing of the vertical Carpentaria-1 well in Empire's 100% owned and operated EP187 tenement, located onshore Northern Territory in the Beetaloo Sub-basin.
- Empire's Carpentaria-1 vertical well has flowed gas to surface at rates that exceed expectations including an initial peak rate of >0.5 mmscf / day and an initial stabilized rate of 0.37 mmscf / day over a 72-hour test period and an instantaneous peak rate following a short shut in of >1.6 mmscf / day
- As a result, Empire has lodged a Discovery Notice with the Northern Territory Government
- Results achieved to date compare favourably to other results across the Beetaloo Sub-basin and indicate that future horizontal development wells in EP187 have the potential to produce at commercial flow rates
Since the last operational update to shareholders on 17 June 2021, Empire has successfully installed production tubing and completion equipment, and recommenced fluid flowback. Flowback is proceeding well, indicating that the fracture stimulation of the four stages carried out in the Velkerri A, Intra A / B, B and C shales have created a fracture network within those zones which is liberating material volumes of hydrocarbons from the gas-rich target shales. Sonic logging demonstrates that the fracture stimulation stages have been placed safely with the induced fractures contained within the target shale zones.
Empire has not yet processed the data required to assess which of the 4 stimulated zones is providing the greatest contribution to flow rates and the relative gas v liquids composition of each zone. This will be determined by analyzing gas samples in the coming weeks. The most productive zones are likely to be targeted for future horizontal appraisal well drilling.
The volume of fluid being produced to surface is gradually reducing, which indicates that the fracture network that has been created by hydraulic stimulation is being drained of fluids, allowing for gas flow.
The proportion of CO2 present in the produced gas streams is less than the measurable lower limit of 1%. This is lower than other wells drilled in the Beetaloo Sub-basin which have had CO2 contributions of 1% to 3%.
The total cost of the fracture stimulation and flow test is expected to be A$5.25 million, which is below budget. The program is being executed safely with no environmental incidents.
Empire's proven low-cost operating model and low Scope 1 and Scope 2 CO2 emissions are likely to have a material positive impact on the economics of future development activities.
Future Development Potential
The flow rates achieved to date at Carpentaria-1 compare favourably to other wells drilled and flow tested in the Beetaloo Sub-basin, particularly given the reduced development costs Empire expects in future given the shallower depths in which the target shales are present in Empire's Beetaloo Sub-basin properties.
The first flow test of Santos' Tanumbirini-1 vertical well flowed at initial rates of 1.2 mmscf / day settling down to 0.4 mmscf / day. The second test, which followed an extended shut-in period, flowed at higher rates. Origin Energy's Kyalla 117 horizontal well flowed at 0.4 - 0.6 mmscf / day over 17 hours and Origin Energy's Amungee NW-1H horizontal well, which had 11 fracture stimulation stages, flowed at 1.15 mmscf / day over a 57-day test.
Empire's Carpentaria-1 initial vertical flow rates indicate that the shallower liquids-rich gas window of the Eastern side of the Beetaloo Sub-basin has the potential for commercial hydrocarbon production in future horizontal wells which may have up to 100 fracture initiation points from 20 - 30 fracture stimulation stages, rather than the 4 stages fracture stimulated in the Carpentaria-1 vertical well. Optimization of fracture stimulation design in future horizontal wells is likely to further enhance productivity.
While Carpentaria-1 vertical flow testing operations are ongoing, Empire is continuing preparations for the drilling and completion of its first horizontal appraisal well. That well will be fully funded from Empire's existing cash at bank.
Investor and Analyst Briefing Call
Empire Managing Director Alex Underwood will host an investor and analyst briefing meeting to be conducted at 11am on Wednesday 30th June 2021 to discuss the results and the next steps in Empire's Beetaloo Sub-basin work programs. Due to COVID-19 restrictions in Sydney this meeting will be conducted virtually.
To view details on joining the briefing, 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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