Empire Energy has taken major steps toward commencing gas production from its Northern Territory assets in the Beetaloo Basin in 2025.
In its recently released Q2 2024 quarterly report, Empire announced signing a binding 10-year gas sales agreement with the Northern Territory Government to supply up to 25 terajoules (TJ) of gas per day from mid-2025. The deal includes an option for an additional 10+ TJ per day for up to 10 years.
“Developing the Beetaloo Basin will create thousands of work opportunities for Territorians and boost the economy by $17 billion,” the Northern Territory Government said in announcing the agreement.
To fund its Beetaloo development plans, Empire completed a A$46.8 million capital raise in June, backed by US investors Bryan Sheffield and Liberty Energy. The raise leaves Empire with A$51.6 million in cash at the end of Q2.
During the quarter, Empire also sold its US oil and gas assets for up to US$9.1 million, allowing it to fully repay outstanding debt and become a pure-play Beetaloo operator.
“With a gas sales agreement now in place, Empire’s financing options for the pilot project have been enhanced,” Empire Energy managing director Alex Underwood said.
“The Beetaloo is becoming increasingly critical to Australia’s energy security.”
Empire is advancing plans to drill the Carpentaria-5H horizontal well in Q4 2024, segueing into first gas deliveries by mid-2025 pending approvals. The company appointed former Origin executive Chris White as Chief Operating Officer after quarter-end to accelerate its transition to production.
Other Beetaloo operators like Tamboran Resources are also making progress, raising capital and signing gas supply deals as the Northern Territory aims to establish itself as a new gas hub.
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