Empire Energy Ltd. has booked a resource upgrade of its 100%-owned EP187 permit in Beetaloo basin onshore Northern Territory.
The 2022 exploration/appraisal program resulted in certification of an LNG-scale resource independently assessed by Netherland, Sewell & Associates, the company said.
The 2C contingent resource was increased 270% to 1,739 petajoules of gas, representing an average estimated ultimate recovery (EUR) per well of 7.9 petajoules.
1C contingent resources were increased 217% to 304 petajoules, representing and average EUR of 6.2 petajoules per well.
3C contingent resources increased by 129% to 3,507 petajoules, for an average EUR of 9.3 petajoules per well.
The high calorific value of the gas results in a higher energy content than equivalent dry gas volumes, and the delineated volumes represent a nationally significant resource of low CO2 content gas, said managing director Alex Underwood, noting the resource has potential to service gaps in demand for domestic gas as well as providing international sales via LNG.
Empire is now progressing towards a 2023 final investment decision on a pilot project without the need to raise further capital in the near-term. It is focused on field development planning, indigenous consultation, regulatory approvals, and negotiations for gas sales.
The new resources estimates are based on test program results of Carpentaria2H, Carpentaria-3H, and Carpentaria-3V. The latter well was drilled vertically into the adjoining fault block to the other two wells and proved the continuity of the Carpentaria shale play into this east fault block.
The thickness of the stacked shale sequence has proven to be consistent throughout the EP187 area as well as validating the modelled depth, continuity, and thickness of the Velkerri shales into that sector of the basin, Empire said.
Empire added that it has now demonstrated it can cost effectively deliver 3 km-long hydraulically stimulated horizontal wells using Australia’s existing rig and fracturing spread fleet. The 3 km horizontal wells make up Empire’s intended design for future development of the Carpentaria project in EP187.
