Empire Energy Group (ASX:EEG) announces drilling and fracture stimulation contracts for Carpentaria-5H well

Empire Energy Group Ltd (ASX:EEG) has executed drilling and fracture stimulation contracts for the Carpentaria-5H well in EP187, Beetaloo Basin. Ensign Rig 965 will drill the well, targeting a ~3,000 metre horizontal section and ~60 fracture stimulation stages in the Velkerri B Shale. Halliburton will conduct the fracture stimulation with 44,000 hydraulic horsepower frac fleet, almost three times greater than previous campaigns. The drilling is expected to commence in late October 2024, followed shortly by the fracture stimulation.

Managing Director's Comments on Carpentaria pilot project

Empire's Managing Director, Alex Underwood, expressed excitement about the company's progress, stating, '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. We remain on track to drill and stimulate C-5H this year, with initial flow test results due in Q1 2025. Engineering work on the surface facilities continues with installation on track for Q2 2025, with pilot production sales anticipated to commence in mid-2025 (subject to regulatory approvals for sale of test gas which are well advanced).'

Summary of Carpentaria-5H well contracts and outlook

Empire Energy Group Ltd (ASX:EEG) has made significant progress by executing drilling and fracture stimulation contracts for the Carpentaria-5H well in EP187, Beetaloo Basin. The company is targeting commencement of sales from the Beetaloo and expects initial flow test results in Q1 2025. The engineering work on the surface facilities is on track for installation in Q2 2025, with pilot production sales anticipated to commence in mid-2025, subject to advanced regulatory approvals. The Carpentaria-5H well aims to optimize fracture stimulation design, conduct a long-term production test, and commence gas sales from the Beetaloo Basin, reflecting the company's ambitious development plans and strategic outlook.