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Carpentaria production hits the roof

Empire Energy

Carpentaria-3H has been shut-in following completion of extended production testing, which turned out to be satisfactory according to Empire Energy.

“The Empire team has had another busy and productive quarter focused on flow testing at Carpentaria-3H and moving towards final investment decision on the EP187 pilot project,” Empire Energy managing director Alex Underwood said.

“We carried out additional flow testing on C- Carpentaria-3H with a pleasing improvement in productivity post-shut in.”

The 90-day initial production rate achieved was 3.1 terajoules per day.

“The technical team is carrying out post-flow testing analysis that continues to build our understanding of how to optimally fracture stimulate the Middle Velkerri B as we move towards the production phase,” Underwood said.

“We are confident that this learning will drive increasing productivity in future wells.”

The entire Empire team continues to make “great progress towards final investment decision on the pilot project”.

Underwood also added that the initial development plan was well advanced, with the number and location of development wells being delineated, and capital expenditure estimates were maturing.

“Empire has a range of funding options at its disposal and all are being progressed,” he said.

“With 100 per cent working interest in all of our properties and no private royalties sold, we have optionality to potentially sell down an asset level interest to an industry player, and conversations with potential joint venture partners have commenced.”

The company has also started a formal gas marketing process.

“With extreme tightness in the Northern Territory and East Coast gas markets continuing as existing sources of supply decline, we are well placed to sell pilot project gas volumes on attractive terms,” Underwood said.

“The receipt of a $15.6 million research and development tax refund last week, taking our cash balance to over $29 million currently, leaves Empire well-funded to carry out all of these activities as we progress towards a final investmen decision in the coming months.”

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