Empire Energy Group managing director Alex Underwood said: “Empire is now entering an exciting phase, targeting commencement of sales from the Beetaloo. Following the recent successful capital raising, the team has been progressing design and execution planning for the C-5H pilot development well and engineering works for the installation of surface facilities to allow for the sale of test gas into the McArthur River Pipeline.”
Underwood says all of the company’s drilling plans remain on track and expects initial flow test results to be returned in next year’s first quarter. Engineering work on the surface facilities is continuing and installation is due in the second quarter of 2025.
Pilot production sales are then anticipated to begin mid-next year.
In July, Empire signed a binding long-term gas sales agreement (GSA) to supply the NT Government with up to the 25 TJ of gas per day for a decade starting from next year. A further 10 TJ per day or more for up to 10 years will also be made available at the option of the government if production levels from the Carpentaria project exceed 100 TJ per day.
As an ex-field take-or-pay basis contract it is based on market competitive gas prices, escalating at 100 per cent of the Consumer Price Index. The option supply would be at a slightly lower price than the initial supply, providing the potential for long-term affordable energy supply for the NT if bigger-scale development occurs.
A “T-junction” has already been installed into the McArthur River Pipeline operated by the Power and Water Corporation to provide the entry point for the pilot production of the C-5H gas.
With more than $50 million in the bank, according to Empire’s June quarterly numbers, a long-term offtake agreement now in place with the NT Government and drilling operators and rigs all locked in for an October spud date, the company appears to be rapidly ticking the boxes on its journey to sustainable cash flow.
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