Empire Energy Moves Forward with Carpentaria-5H Drilling and Fracture Stimulation
EMPIRE ENERGY GROUP LIMITED (EEG) Share Update September 2024 Monday 9th
Empire Energy Announces Major Drilling and Fracture Stimulation Contracts for Carpentaria Pilot Project
Empire Energy Group Ltd (ASX: EEG) has announced significant progress in its Beetaloo Basin operations by securing contracts for the drilling and fracture stimulation of the Carpentaria-5H well.
Instant Summary:
- Ensign Rig 965 contracted to drill Carpentaria-5H in EP187.
- Halliburton contracted to fracture stimulate Carpentaria-5H with 44,000 hydraulic horsepower (HHP) frac fleet.
- Carpentaria-5H will target a ~3,000 metre horizontal section and ~60 fracture stimulation stages.
- Drilling expected to commence in late October 2024.
- Initial flow test results due in Q1 2025, with pilot production sales anticipated to commence in mid-2025.
Empire Energy's Strategic Advancements
Empire Energy Group Ltd has taken a significant step forward in its Beetaloo Basin operations by securing contracts for the drilling and fracture stimulation of the Carpentaria-5H well. The company has engaged Ensign Australia Pty Limited to drill the well using Ensign Rig 965, a technologically advanced rig with a strong track record in onshore Australia.
Ensign Rig 965, an ADR-1500 model triple rig, will be responsible for drilling, casing, and suspending the Carpentaria-5H well. This rig is expected to reduce drilling time and enhance operational efficiency, contributing to the overall success of the project.
Fracture Stimulation by Halliburton
Empire has also contracted Halliburton Australia Pty Ltd to provide fracture stimulation services for the Carpentaria-5H well. Halliburton, a global leader in energy services, will mobilize a 44,000 HHP frac fleet to execute a high-efficiency, 60-stage fracture stimulation program. This program will incorporate best practices from North American shale analogues and leverage learnings from previous Carpentaria wells.
The Carpentaria-5H well will be drilled from the same wellpad as Carpentaria-2H and Carpentaria-3H, targeting the Velkerri B Shale. The well is designed to optimize fracture stimulation and achieve higher productivity, with the ultimate goal of commencing gas sales from the Beetaloo Basin by mid-2025, subject to regulatory approvals.
Project Timeline and Expectations
Drilling of the Carpentaria-5H well is expected to commence in late October 2024, following the release of Ensign Rig 965 from an existing contract. Fracture stimulation will begin shortly after the rig is released. Initial flow test results are anticipated in Q1 2025, and pilot production sales are expected to start in mid-2025, pending regulatory approvals.
Empire's Managing Director, Alex Underwood, expressed excitement about the project's progress, highlighting the company's recent successful capital raising and ongoing engineering works for surface facilities. These efforts aim to facilitate the sale of test gas into the McArthur River Pipeline, ensuring the project's timely advancement.
The execution of these contracts marks a significant milestone for Empire Energy, potentially boosting investor confidence and driving stock price appreciation. The advanced capabilities of Ensign Rig 965 and Halliburton's extensive experience in fracture stimulation are expected to enhance the project's success and productivity.
Investor Reaction:
Analysts are likely to view this announcement positively, given the strategic advancements and strong partnerships with Ensign and Halliburton. The detailed project timeline and expected productivity gains may further bolster investor sentiment.
Conclusion:
Investors should closely monitor the progress of the Carpentaria-5H well and the upcoming flow test results in Q1 2025. Empire Energy's strategic efforts and partnerships position the company for potential growth and success in the Beetaloo Basin.