Empire Energy Group Ltd (EEG.AX) Quarterly Activities Report
Sydney, Australia, Oct 30, 2020 - (ABN Newswire) - The Quarter ending 30th September 2020 has been productive for Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF). The Company commenced drilling Carpentaria-1, its first well in the highly prospective and increasingly active Beetaloo Sub-basin of the Northern Territory. The results of Carpentaria-1 are positive for the future of the Company. Empire looks forward to providing further updates to shareholders as our analysis and understanding of the well results develops.
Highlights of Q3 2020:
- Empire intersected liquids rich gas across a thick sequence of the Velkerri Formation in its 100% owned Carpentaria-1 well. The results materially exceeded pre-drill expectations
- Major operators in the Beetaloo Sub-basin continue to generate strong operational results. Santos flow tested the Tanumbirini-1 vertical well which 'significantly exceeded expectations' with strong flow rates and Origin drilled and hydraulically stimulated the Kyalla-117 horizontal well with flow test results expected in Q4 2020
- Empire raised ~A$18.1 million following a successful A$10 million placement and A$8.1 million option conversion proceeds during the quarter
- Empire Directors exercised A$1.9 million of options bringing their total investments to A$6.1 million since 2018
- The Northern Territory elections returned the Labor Government to power. The industry now has strong bipartisan Government support in the Northern Territory and Federal Government support
- A further increase in activity in the Beetaloo Sub-basin is anticipated in 2021
- The Company ended the Quarter with A$21m cash at bank
Comments from Managing Director Alex Underwood: It has been a busy and successful Quarter for the Empire team. We commenced drilling Carpentaria-1, only the second well drilled in the Beetaloo under the new regulatory framework. The results have materially exceeded our expectations both in terms of the thickness of the shales and the presence of higher value liquids. Our intersection of liquids rich gas is a new paradigm for this major emerging basin. These results are likely to materially impact our resource assessments which had previously assumed that we would encounter dry gas and give us greater optionality to consider early commercialisation strategies. Our neighbours continue to generate strong results and are planning further material investments to continue appraising major discoveries in the year ahead. This activity enhances our understanding of our own properties and how to add value to them. These results and our own are attracting wide attention for the Beetaloo Basin and play into the Federal Government's Gas Fired Recovery strategy and its promotion of gas for energy and feedstock material as an industrial foundation for Australia's economy. With support for our industry now firmly entrenched at the Federal and Northern Territory Government levels, strong forecast Australian and Asian gas market fundamentals and our balance sheet strengthened through recent capital issuance, the platform for further growth is well established as we move into the appraisal phase in EP187 and prepare for exploration of our Northern properties.
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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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