Empire Energy Group Ltd (ASX:EEG) has completed hydraulic stimulation of the Carpentaria-3H (C-3H) well and the drilling of the Carpentaria-4V (C-4V) at Exploration Permit (EP) 187, well within budget.
C-3H development came in about $5.9 million below the risked budget, totalling $27.3 million for drilling and stimulation of the well.
C-4V was also drilled to its full depth of 2,000 metres at a total cost of $9.8 million, some $800,000 over risked estimate due to weather-related delays.
Potential uplift in contingent resources
“The team has again delivered great results with the execution of the C-3H hydraulic stimulation and C-4V drilling program significantly under budget,” Empire Energy managing director Alex Underwood said.
“Empire continues to be the Beetaloo’s drilling, hydraulic stimulation and cost leader. Flow testing at C-3H will commence imminently, with initial gas flow rates expected in the coming weeks.
“Empire will then recommence flow testing on C-2H, following a period of shut-in to monitor pressure build up.
“C-4V has confirmed that the Velkerri shales continue through to the Carpentaria East fault block with consistent thickness and about 150 metres additional depth.
“We anticipate a significant uplift in independently assessed contingent resources later this quarter.
“Front-end engineering and design work continues for the Carpentaria Pilot Project alongside gas sales and pipeline connection negotiations.
“These results further increase the team’s confidence as we drive towards early commercialisation.
“The strong cost performance of this program leaves Empire well-funded for the critical upcoming work required to make a final investment decision.”
Empire’s current cash balance sits at $23 million, with an additional $15 million remaining undrawn in a new credit facility.