Emperor locks in Valaris 107 for Judith-2 appraisal well
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9:17am on Tuesday 8th of September, 2026 AEST ~9am, 8th Sept, 26
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Emperor Energy has signed a term sheet to secure the Valaris 107 jack-up rig for its Judith-2 appraisal well, targeted for April 2027. The deal commits US$3.5 million before the full drilling contract is finalised, while environmental approval remains outstanding.
- Valaris 107 secured for a targeted April 2027 drilling campaign
- US$1.5 million paid, with a further US$2.0 million due on contract signing
- US$165,000 operating day rate and up to 45 days planned for drilling and flow testing
- Revised Judith-2 Environmental Plan resubmitted to NOPSEMA
- Full-form contract and environmental approval remain key milestones
Valaris 107 secured for April drilling
Emperor Energy Limited (ASX:EMP) has secured planned access to the Valaris 107 jack-up rig for its Judith-2 appraisal well, targeted for April 2027. The agreement with Valaris subsidiary ENSCO Australia sets out the principal commercial terms, but it is not yet the full-form drilling contract.
The rig is already operating in the offshore Gippsland Basin and is expected to become available after completing its current commitments in March 2027. Emperor has negotiated an estimated 30-day drilling programme followed by 15 days of flow testing, with an option to extend the campaign for an additional sidetrack well. CEO Tim Handley described securing the rig as a “major step forward”, while the filing pointed to the rig’s nearby location and current operating performance.
US$3.5 million committed before final contract
Emperor paid US$1.5 million when the term sheet was executed and must pay another US$2.0 million when the full-form contract is signed. The parties are targeting completion of that contract by 31 October 2026, with the remaining terms still to be finalised.
The rig’s operating day rate is US$165,000, and the initial US$3.5 million in payments will be credited against the aggregate drilling contract value. Further payments to Valaris are due in 2027 before mobilisation. The announcement does not disclose the total contract value or how Emperor intends to fund the remaining costs, leaving the eventual cash requirement an important unresolved detail.
Environmental approval remains a project gate
Emperor has resubmitted the Judith-2 Environmental Plan to the National Offshore Petroleum Safety and Environmental Management Authority after receiving a request for further information. The company now expects final approval by the end of September 2026, but approval has not yet been granted.
That leaves two near-term conditions around the April drilling target: execution of the full-form contract and regulatory approval of the revised Environmental Plan. The next meaningful signals will be whether both arrive on schedule, and whether the final drilling terms reveal a total cost that can be supported through to mobilisation and flow testing.
Bottom Line?
The rig is no longer the immediate availability problem, but April 2027 still depends on a signed full-form contract, NOPSEMA approval and funding for the remaining drilling programme.
Questions in the middle?
- Will Emperor and Valaris complete the full-form drilling contract by 31 October 2026?
- Will NOPSEMA approve the revised Environmental Plan by the company’s end-September target?
- How will Emperor fund the undisclosed balance of the drilling and flow-testing campaign?
