Empire Energy has announced a LNG scale resource in its Betaloo Sub-Basin portfolio following the release of an independently assessed report released by Netherland, Sewell & Associates.
The Sydney-based company declared a 270% increase in 2C Contingent Resources to 1,739PJ representing an average Estimated Ultimate Recovery per well of 7.9 PJ. The 1C and 3C numbers were a 217% increase to 304PJ and 129% to 3,507PJ respectively.
Empire Energy Managing Director Alex Underwood said of the results: “The Empire team is delighted to share these outstanding results with shareholders. The volumes delineated in EP187 represent a nationally significant resource of low CO₂ gas. Warnings abound from multiple sources that Australia faces material gas shortages in years ahead, a view that I share given the enduring role of gas.
“The Beetaloo and more particularly Empire’s resource has the potential to service domestic demand gaps and international sales via LNG. At an assumed gas contract price of $10 / GJ, each development well in EP187 could produce between $62 million and $95 million of revenue over its life, compared to a development cost of ~$20 million in the pilot phase and or ~$15 million in larger development scenarios.
“NSAI has identified over 200 2C drilling locations, representing LNG scale development potential. Following the recent green light from the NT Government to move into production, the Empire team is progressing towards development drilling and cash flow. Our current capital resources allow us to proceed to a final investment decision on the pilot project this year without raising any further capital in the near term. This will allow the team to focus on further value accretive work including field development planning, indigenous consultation, regulatory approvals and gas sales negotiations.”
Empire released the results to the market after last week revealing that its Carpentaria-2H well had produced a total of 323 TJ over 127 days, which equated to a normalised rate of 2.75TJ per day per 1,000m. The well has been shut in for availability as a gas producer and would be reopened for flow testing once the soak period had concluded.
Underwood said this underpinned further confidence in EP187 for economic development.
Recently the NT Government gave unconventional drilling in the Betaloo the green light for commercial production and Underwood said, “line of sight towards commercialisation is getting clearer by the day”.
