Empire Energy, listed on the ASX, appears to be making many powerful friends after signing a Memorandum of Understanding, or “MoU” with the Power and Water Corporation, owned by the Government of the Northern Territory, for sale and purchase. potential gas transportation of Empire’s NT assets. The fledgling partnership could see Empire leverage Power and Water’s McArthur River pipeline for its own gas delivery that crosses its Carpentaria-1 and Carpentaria-2H wells en route to a major highway and nearby gas plant.
The move capped a busy month for the Sydney-based company. Less than a week ago, Empire signed an agreement with APA Group that would allow the duo to explore intermediate infrastructure development opportunities in the Beetaloo sub-basin, including the collection, processing and pipelines of gases and liquids. Empire said the APA partnership would foster rapid production capabilities in the market using the existing gas transmission infrastructure of its associates.
The APA MOU included the dual strategic objective of expanding Darwin’s LNG export facilities and building a pipeline to Mount Isa. The pipeline, in turn, would allow the gas to flow to domestic markets on the east coast and be exported as LNG via Gladstone.
Empire says its recent ventures with Power and Water Corporation and APA have progressed down the production path and the timing of transactions appears to be exquisite.
In the same time frame as the inking of two separate MoUs, Empire has also achieved significant success with its most recent well test. Having recorded a nearly 45 percent increase in average flow, the results seem to highlight the potential for massive development of its Beetaloo sub-basin area through its Carpentaria-1 borehole.
The well initially saw its first round of extended production testing or “EPT” suspended due to travel constraints related to the pandemic. However, after being left unused for about two months, the well came back to life with a roar recording an average of 0.364 million cubic feet of gas per day during its first 10 days of testing.
The COVID curse appears to have been a blessing in disguise for Empire, with the company claiming that increased production rates could be associated with the diffusion of water into the shales in the basin, increasing basin fractures and creating more pathways. gas production during the closed period.
Empire has since incorporated the data from Carpentaria-1 into basin-specific reservoir simulation and completion packages and will use this data to detect key shale targets with its ongoing Carpentaria-2H evaluation drill program.
Empire is the first Beetaloo operator to show a clear path to market at a time when gas supply forecasts for Australia’s east coast and growing Asian markets are increasingly limited. The MOUs we signed with APA Group and Power Water Corporation will give us access to existing and planned pipeline infrastructure, from our East and West Beetaloo properties, and a customer ready for our early gas production in line with our rapid-to-market strategy.
The busy days for Empire Energy seem to have only just begun. The coming months are filled with both drilling programs and hydraulic simulations that have been approved for up to seven horizontal wells on its landholdings in the Northern Territory.
With $ 30 million in the prize pool, a trilogy of grant agreements of up to $ 19.3 million under the Beetaloo cooperative drilling program and a few important partnerships to her credit, this gas exploration junior appears to be growing rapidly. .
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