AUS
NZ
UK
CA
USA
IND
Highlights
- - Empire Energy (EEG) achieves a key milestone with the completion of the Carpentaria 5H well.
- - New credit facility strengthens Empire Energy’s financial position.
- - Longest horizontal section drilled to date in the Beetaloo Basin.
Empire Energy (ASX:EEG) has successfully completed drilling and casing operations for the Carpentaria 5H (C-5H) well, a significant development in its Carpentaria Pilot Project in the Beetaloo Basin, Northern Territory. The well reached a total depth of 5,310 meters, with a 3,310-meter horizontal section that intersected the Velkerri-B shale, showing strong gas presence throughout.
The completion of C-5H included a 5.5-inch casing extending through the horizontal section, marking a record for the longest drilled and cased horizontal well in the Beetaloo Basin. This milestone underscores Empire Energy’s continued progress in operational excellence and resource development.
Key Developments in the Carpentaria Pilot Project
C-5H was drilled alongside the Carpentaria-2H (C-2H) and Carpentaria-3H (C-3H) wells, forming part of the Carpentaria Pilot Project’s initial phase. Empire Energy plans to commence fracture stimulation and production testing for C-5H in the second quarter of 2025, following the wet season in the Northern Territory. The decision to delay stimulation from January to April ensures operational efficiency while mitigating weather-related risks.
With the horizontal section extending 3,250 meters, the well is positioned for hydraulic stimulation, paving the way for extended production testing and eventual gas production from the project. This step marks a crucial progression towards achieving first gas delivery in 2025.
Enhanced Financial Flexibility
In a parallel development, Empire Energy has executed new credit facility agreements, further bolstering its financial standing. The facility, arranged with Macquarie Bank, includes access to a research and development credit line of up to $30 million and a performance bond facility of up to $5 million. This extension significantly enhances liquidity, with an additional $28.2 million available for drawdown, without diluting shareholder interests.
The company also reported a strong cash position of $25.7 million, ensuring robust financial health as it progresses with its pilot project and associated infrastructure plans.
Empire Energy continues to solidify its position as a leader in the Beetaloo Basin’s resource development. With the C-5H well poised for production testing and a strengthened financial foundation, the company is well-equipped to advance its Carpentaria Pilot Project and unlock the basin’s potential.
