Regulatory and Traditional Owner Approvals Key to Empire Energy’s Gas Plant Build

Strategic Progress on Carpentaria-5H Well

Empire Energy Group has reported significant progress in its Northern Territory operations, focusing on the hydraulic stimulation of the Carpentaria-5H (C-5H) well. Scheduled for June 2025, this stimulation marks a critical step in unlocking the well’s potential. The C-5H well boasts the longest horizontal section drilled in the Beetaloo Basin to date, extending 3,310 metres within the Velkerri B Shale formation. This extended horizontal reach offers promising prospects for enhanced gas recovery and flow rates.

The company’s technical team has utilized the delay since drilling in January to optimize the stimulation design, refining fluid selection, pump strategies, and perforation techniques. This careful preparation aims to maximize production efficiency and mitigate risks associated with weather-related delays that initially postponed stimulation activities.

Regulatory and Traditional Owner Engagement

Empire is advancing through the final regulatory hurdles required to commence gas sales from its EP187 permit area. A pivotal milestone is the upcoming Northern Land Council (NLC) meeting in mid-May, where the company will seek approval from traditional owners under the Beneficial Use of Gas provisions of the Northern Territory Petroleum Act. Managing Director Alex Underwood expressed confidence in securing this consent, citing ongoing positive engagement with senior traditional owners.

Following regulatory approvals, Empire plans to initiate construction of the Carpentaria Gas Plant and associated in-field infrastructure. This facility will process gas from the pilot project wells, C-2H, C-3H, and C-5H, enabling the company to supply gas into the local Northern Territory market. The pilot project is designed not only to generate early cash flow but also to validate the productivity of the Velkerri shale resource ahead of a potential full-field development.

Financial Position and Capital Deployment

Empire’s liquidity position remains robust, with $14.4 million in cash and $17.8 million available under undrawn credit facilities with Macquarie Bank, totaling $32.2 million in available funds at quarter-end. The company recently completed documentation for a $30 million Research and Development (R&D) facility with Macquarie, which will finance the Carpentaria Gas Plant construction and related infrastructure.

Additionally, Empire fully repaid its previous revolving credit facility following receipt of the 2024 R&D tax rebate, demonstrating prudent financial management. The company’s capital expenditure during the quarter focused on the Carpentaria Pilot Project, with no production or exploration expenditure recorded on other assets.

Corporate Developments and Market Positioning

Looking ahead, Empire Energy will hold its Annual General Meeting (AGM) at the end of May, where shareholders will vote on a proposed name change to Beetaloo Energy Australia Limited. This rebranding reflects the company’s sharpened focus on the Beetaloo Basin following the divestiture of its US assets last year.

Empire’s recent invitation to join the Darwin Major Business Group (DMBG) further underscores its growing stature within the Northern Territory’s business community. The DMBG comprises leading companies invested in the region’s economic development, aligning with Empire’s strategic ambitions.

Sector Context and Outlook

The Northern Territory’s evolving regulatory landscape, including the removal of third-party merits reviews and adjustments to renewable energy targets by the Country Liberal Party government, provides a more certain environment for petroleum projects. Industry peers such as Santos and APA Limited are also advancing exploration and infrastructure plans in adjacent basins, signaling broader momentum in the region’s gas sector.

Empire’s upcoming stimulation and flow testing results for C-5H will be closely watched by investors as indicators of the Velkerri shale’s commercial viability. Success here could catalyse further development and position the company as a key supplier in the Northern Territory’s emerging gas market.