Carpentaria-1 Well Liquids Rich Gas Intersected

Source: 10/12/2020, Location: Not categorized

Empire Energy Group Limited (“Empire”) is pleased to provide shareholders with an operational update on its 100% owned and operated Carpentaria-1 exploration well in EP187, located on the eastern side of the Northern Territory’s Beetaloo Sub-basin.

Highlights include:
• Empire has intersected an extensive interval of liquids rich gas in the Velkerri Shale based on mud gas liquids readings
• The proportion of liquids rich gas intersected in the Velkerri dramatically exceeds that of analogue wells previously drilled across the Beetaloo Basin and materially exceeds Empire’s pre-drill expectations
• The Velkerri Formation in Carpentaria-1 is nearly 1,000m thick
• The substantial proportions of heavier end, higher value liquid hydrocarbons indicated in the target Velkerri Shale will materially enhance the economics of any future EP187 production because liquid hydrocarbons attract higher oil linked market pricing than dry gas, opening up additional commercialization options for Empire
• The Velkerri Shale interval in EP187 is shallower than analogue wells in other parts of the Beetaloo Basin with equivalent thickness and gas shows, resulting in reduced drilling costs
• Appraisal of the liquids-rich gas Velkerri Shale targets is planned for early in the 2021 Dry Season including fracture stimulation and flow testing
• A shareholder briefing call will be conducted at 2pm AEDT today.

Comments from Managing Director Alex Underwood:
We are delighted to announce that we have intersected liquids-rich gas across a thick and contiguous Velkerri Shale section in Carpentaria-1, Empire’s first exploration well in its highly prospective Northern Territory petroleum acreage.

This result has pleased the Empire team. In the pre-drill planning we have worked with various seismic interpretations and our ‘most likely’ model was that we would encounter the Velkerri Shale at greater depth, and that it would tend to drier gas. This had been the experience of the wells drilled across the Beetaloo Basin that have targeted the Velkerri Shale.

The presence of high levels of associated gas liquids in the target shales is encouraging for future commercial production scenarios because high-value liquids from produced gas can significantly enhance economics.

The shallower depths at which we have intersected the Velkerri Shale will reduce development costs in future drilling programs.

We will now further appraise the Velkerri Shale sequences with an extensive formation evaluation program commencing within the week. Fracture stimulation and flow testing is scheduled for Q2 2021, which in the success case will allow Empire to book maiden contingent resources including higher value liquid hydrocarbons not previously expected.

Gulf Oil and Gas
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