Empire Hits...12 Oct 2020 04:11
Explorer Empire Energy has raised the pulses of those watching the quest for large-scale unconventional oil and gas resources in the Northern Territory, reporting that its first well has found gas with a much higher content of potentially lucrative liquids than anticipated.
Shares in Empire surged more than 30 per cent in early trading after the company said the Carpentaria-1 well found liquids-rich gas across a thick section of shale in the Beetaloo Basin. The shale was also struck at a shallower depth than expected, said the company, which started drilling in its 100 per cent-held permit last month.
Onshore shale exploration in the Northern Territory is supported by government but has raised community concerns. Origin Energy
Managing director Alex Underwood said the company is "delighted to announce the discovery in its "highly prospective" acreage in the NT. Empire had anticipated hitting the shale zone at a deeper depth and had also expected the gas to be "drier", in line with other wells drilled across the Beetaloo Basin that have targeted that same Velkerri shale rock, he said.
"The presence of high levels of associated gas liquids in the target shales is encouraging for future commercial production scenarios because high-value liquids from produced gas can significantly enhance economics," Mr Underwood said in a statement ahead of a teleconference briefing for shareholders scheduled for later on Monday.
"The shallower depths at which we have intersected the Velkerri Shale will reduce development costs in future drilling programs."
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Updated: Oct 12, 2020 – 12.36pm. Data is 20 mins delayed.
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Empire is one of the oil and gas explorers that breathed a sigh of relief at the result of the NT election in August, declaring the re-election of the Gunner Labor government an endorsement of the onshore gas sector. The explorers, which include majors Origin Energy and Santos, have high hopes of proving up large volumes of gas resources that could provide a major economic boost for the NT as well as a potential source of supply for the east coast, or for export.
Origin recorded positive initial results from its Amungee horizontal well in the Beetaloo Basin in 2016, likewise Santos earlier this year at its Tanumbirini-1 well. Work in the region has however been slowed, both by the NT's now-abandoned moratorium on unconventional exploration, the subsequent development of comprehensive regulations to allow activity to go ahead, the permitting approvals process and more recently by spending cutbacks and the COVID-19 pandemic.
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