Empire to Develop Gingin West 1 and Red Gully 1 Discoveries

Empire Oil & Gas N.L. has announced that it will develop both the Gingin West 1 and Red Gully 1 gas and condensate discovery wells in Western Australia.

In February the company said Red Gully was the largest Jurassic gas and condensate discovery well in Western Australia, and that it was confident it had already reached its 2011 goal of having recoverable gas of up to or exceeding of 30 billion cubic feet and an estimated 2 million barrels of associated condensate from both the Gingin West 1 and Red Gully 1 wells.

Managing director Craig Marshall says the flow rates put to an end the myth that the Jurassic Cattamarra Sandstone reservoirs at Gingin are tight.

Red Gully-1 and Gingin West-1 recoverable gas is conservatively estimated at between 20 to 33 BCF together with associated condensate.  Condensate is light crude oil and attracts a parity price for light crude oil.

Participants are: Empire Oil Company (Operator) 68.75%; ERM Power 21.25%; Wharf Resources 10%