Empire Energy Ltd. has received three new grant agreements from the Australian government under the Beetaloo subbasin cooperative drilling program.
The grants supersede the previous grant which became void earlier this year through a decision for the Federal Court.
Empire said the new grant has materially similar terms to those of the previous grant in September last year. In essence Empire has been awarded funding of up to $19.4 million (Aus.) which it estimates will offset 25% of the cost of seismic surveys as well as drilling, fracturing, and flow testing of three horizontal appraisal wells in its Beetaloo permits.
Empire has already carried out the Charlotte 2D seismic survey and drilling of Carpentaria-2H in permit EP187 (OGJ Online, Oct. 19, 2021). These are eligible for grant funding under the new award.
The grant also covers 25% of the cost of drilling, fracturing, and flow testing the Carpentaria-3 horizontal well and associated activities capped at $6.8 million, with the same percentage for Carpentaria-4 capped at $6 million.
If the appraisals are successful and production licenses are awarded, all three wells are likely to become future production wells, Empire said.