Emperor Energy Nears Judith-2 Drilling with Valaris Rig Secured for March 2027

Valaris 107 Rig Locked In for Judith-2 Appraisal Well

Emperor Energy (ASX:EMP) has secured the Valaris 107 jack-up drilling rig for its Judith-2 appraisal well, scheduled for March 2027. The rig, currently operating in the Gippsland Basin for Esso/Woodside and GB Energy, has been reconfirmed as available after completing existing contracts. Emperor Energy continues weekly negotiations with Valaris over drilling contract terms and expresses confidence in finalising the agreement soon.

Strategic Funding Efforts Gain Traction

The company has received multiple non-binding indicative offers (NBIOs) from interested parties to participate in the Judith appraisal and development program, with term sheet negotiations ongoing. Emperor Energy is actively engaging with domestic energy retailers, industrial gas users, LNG exporters, and notably the expanding AI data centre sector, exploring opportunities for Judith gas as a long-term fuel source for dedicated gas-fired power generation supporting hyperscale data centres.

In parallel, Emperor Energy lodged a submission to the Commonwealth Gas Market Review advocating for a Market Based Offset Mechanism. This proposal would allow LNG exporters to meet domestic reservation obligations by investing in new domestic gas supply, potentially accelerating project funding and commercial outcomes by providing greater policy certainty.

Well Planning and Contracting Progress

Long lead-time items for the Judith-2 well, including surface wellhead components and casing strings, have been secured. Contracts for well flow testing have been awarded to Halliburton and Metrol, with further contract awards for directional drilling, logging while drilling, wireline logging, mudlogging, drill bits, and drilling fluids expected imminently.

Support services are also in place, with Qube Energy providing shore-based logistics from Barry Beach Marine Terminal and Marine Environmental Services conducting a well-site geophysical survey planned for October, pending final Environmental Plan approval. Initial well test simulations suggest flow rates from individual sand packages that could underpin the commercial viability of the Judith Gas Field.

Environmental Plan Approval on Track

Emperor Energy submitted a revised Environmental Plan (EP) to NOPSEMA in late May and responded to additional information requests in June concerning readiness for unlikely loss-of-well control scenarios. Final EP approval is anticipated by mid-September 2026. To bolster this process, the company engaged Aventus Consulting, environmental specialists with experience supporting Exxon Mobil’s Gippsland Basin operations involving the Valaris-107 rig.

Resource Estimates Support Project Potential

The Judith Gas Field holds substantial contingent and prospective gas resources. Gaffney Cline’s deterministic estimates place 2C contingent resources at 166 billion cubic feet (Bcf) within the Judith East Fault Block, while probabilistic estimates for the greater Judith area indicate unrisked prospective resources ranging from 447 Bcf (P90) to 3,616 Bcf (P10). These volumes underscore the field’s commercial promise pending successful appraisal.

Financial Position and Corporate Actions

At quarter-end 30 June 2026, Emperor Energy held $15.6 million in cash, having incurred $747,000 in exploration costs during the quarter. The company paid $448,000 to directors and management. In July, 35 million loan-funded shares were issued to Managing Director Tim Handley at $0.077 per share, alongside 10 million sign-on options following shareholder approval.

There were no changes to petroleum tenements during the quarter, but the sale of the company’s gold assets was completed post-quarter, with lease transfers underway. Emperor Energy remains fully focused on advancing the Judith-2 appraisal well, balancing contract finalisation, regulatory approval, and strategic funding efforts.