Empire Energy Launches Carpentaria-5H Drilling in Beetaloo Basin
EMPIRE ENERGY GROUP LIMITED (EEG) Share Update November 2024 Sunday 17th
Empire Energy Begins Drilling Carpentaria-5H in Beetaloo Basin
Empire Energy Group Limited has announced the start of drilling operations for the Carpentaria-5H well, marking a significant step in their Carpentaria Pilot Project in the Beetaloo Basin.
Instant Summary:
- Drilling commenced on November 16th, 2024.
- Expected drilling and casing duration: 45 days.
- Carpentaria-5H aims for higher gas production rates.
- Empire's cash at bank: $34 million.
- Traditional Owner Welcome to Country Ceremony held.
Drilling Operations Begin
Empire Energy Group Limited has commenced drilling the Carpentaria-5H well in the Beetaloo Basin, a key component of their Carpentaria Pilot Project. The drilling began at 9:30 am NT time on November 16th, 2024, with the Ensign Rig #965. This well is expected to take approximately 45 days to drill and case, targeting a 3,000-meter horizontal section.
The Carpentaria-5H well is designed to deliver higher gas production rates than previous wells, with plans to sell gas into the Northern Territory local market, subject to approvals. After the rig release, the well will undergo hydraulic stimulation to enhance productivity.
Technical Advancements
The Carpentaria-5H well will feature a larger wellbore diameter, allowing for increased stimulation horsepower, proppant concentration, and water concentration. These enhancements are intended to boost gas flow rates, building on the learnings from four previously drilled wells in the EP187 permit.
Empire's Managing Director, Alex Underwood, emphasized the importance of this milestone for both the company and the Beetaloo Basin. The company aims to commence gas sales from EP187 in 2025, with planning for the Carpentaria Gas Plant underway.
Community Engagement
On November 15th, a traditional Welcome to Country Ceremony was conducted by the traditional owners of the land where the well is being drilled. The well has been given the Aboriginal name Jijimhunja, symbolizing a small beetle that burrows into the ground. Empire Energy is committed to working with traditional owners, providing employment opportunities and other benefits.
Empire is collaborating with the Northern Land Council to facilitate an on-country meeting with traditional owners to seek consent for the sale of gas under the NT Petroleum Act's Beneficial Use of Test Gas provisions.
The commencement of drilling for Carpentaria-5H is a positive development for Empire Energy, potentially leading to increased gas production and sales. This could enhance the company's revenue streams and strengthen its position in the energy market. The successful execution of this project may also boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to view this development as a strategic move to enhance Empire's production capabilities. The focus on community engagement and environmental considerations may also be seen positively by stakeholders, aligning with broader industry trends towards sustainable practices.
Conclusion:
Investors should keep an eye on the progress of the Carpentaria-5H drilling operations and subsequent gas production rates. Empire Energy's strategic initiatives in the Beetaloo Basin could present new opportunities for growth and profitability.