Empire Energy Group: Record-breaking Carpentaria-3H (“C-3H”) drilled on time and under budget fracture stimulation and flow testing of C-3H, and Carpentaria-4V (“C-4V”) drilling to commence imminently.

• C-3H drilled to total depth of 4,460 metres on time and under budget

• Total horizontal section length of 2,632 metres drilled, of which 2,374 metres was successfully placed within the target Velkerri-B shale formation, with strong gas shows throughout the target shale zone. This represents by far the longest horizontal section drilled in the Beetaloo to date

• Forecast total cost for C-3H drilling of <$11 million compares favourably to Carpentaria-2H and is a small fraction of the cost of drilling deeper Beetaloo wells

• Fracture stimulation operations and production testing of C-3H, fully funded from existing cash at bank, scheduled to commence in early December 2022

• C-3H fracture stimulation design will benefit from cutting edge technological learnings from Empire’s recent C-2H fracture stimulation and flow testing program, which is likely to enhance well productivity, particularly flow rates

• Drilling of C-4V scheduled to commence in the coming weeks following mobilisation of the rig from the C-3H location

• Empire has received a Research and Development Tax Offset of $7.8 million in cash and a GST refund of $1.6 million in cash following processing of its September Business Activity Statement

• Incredibly tight Australian gas market conditions are driving significant commercial interest from potential customers for Empire’s low CO2 gas which is likely to facilitate the company’s rapid commercialisation strategy

• Current cash at bank is $33.5 million 

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