Empire Energy announces Beetaloo resource upgrade
Empire Energy on May 29 announced an upgrade to the EP187 contingent and prospective resources. The EP187 tenement, located in the Northern Territory’s Beetaloo sub-basin, is 100% owned and operated by Empire.
According to the results of the assessment, conducted by Netherland, Sewell & Associates (NSAI), 2C contingent resources increased by 270% to 1,739 petajoules (PJ), 1C contingent resources were up by 217% to 304 PJ and 3C contingent resources increased by 129% to 3,507 PJ.
Empire said that due to the high calorific value of the EP187 gas, the assessed sales volumes in PJ have a higher energy content than equivalent dry gas volumes.
“The volumes delineated in EP187 represent a nationally significant resource of low CO2 gas. Warnings abound from multiple sources that Australia faces material gas shortfalls in years ahead, a view that I share given the enduring role of gas,” said Alex Underwood, managing director of Empire Energy. “The Beetaloo and more particularly Empire's resource has the potential to service domestic demand gaps and international sales via LNG.”
Underwood mentioned that each development well in EP187, assuming a gas contract price of A$10/GJ, could generate between A$62mn and A$95mn in revenue over its lifetime, compared to development costs of approximately A$20mn in the pilot phase and A$15mn in larger development scenarios.
“NSAI has identified over 200 2C drilling locations, which indicate LNG-scale development potential,” Underwood said.
Empire said earlier this month it will speed up its investment decision after Northern Territory’s (NT) green light for developing the Beetaloo. NT government on May 3 announced the finalisation of all 135 recommendations of the 2018 Scientific Inquiry into Hydraulic Fracturing in the NT chaired by Justice Rachel Pepper, establishing a platform for approval of gas production in the Beetaloo sub-basin. Finalisation of the recommendations sets the scene for approval of gas production in the Beetaloo sub-basin including Empire's EP187 Carpentaria pilot project.
“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,” Underwood said.