Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF) is pleased to announce that it has commenced drilling of the Carpentaria-5H ("C-5H") well in Empire's 100% owned and operated Beetaloo Basin permit EP187.

- Carpentaria-5H ("C-5H") commenced drilling at 9.30am NT time on Saturday 16th November

- C-5H is expected to take approximately 45 days to drill and case

- C-5H is being drilled by the Ensign Rig #965 and will form part of the Carpentaria Pilot Project

- C-5H is designed to deliver higher gas production rates than previous wells and, subject to approvals, sale of gas into the NT local market

- After rig release C-5H will be hydraulically stimulated

- Cash at bank is $34 million

Comments from Managing Director Alex Underwood:

"Empire has now reached the execution phase of our Carpentaria-5H operations.

This is an important milestone for our company and the Beetaloo Basin generally.

This well will be our first full-scale pilot development well, incorporating learning from the four wells that have previously been drilled successfully in EP187. The well design incorporates a larger well bore diameter targeting a 3,000m drilled and cased horizontal section. The larger well bore diameter will allow Empire to increase stimulation horsepower, proppant concentration and water concentration, with a goal of producing higher gas flow rates than in previous wells.

Our planning for the installation of the Carpentaria Gas Plant is progressing with a goal of commencing the sale of gas from EP187 in 2025.

We look forward to updating shareholders as drilling operations continue.

Commencement of Carpentaria-5H Drilling Operations

C-5H is being drilled by the Ensign Rig #965 and will form part of the Carpentaria Pilot Project. C-5H will be Empire's longest drilled and stimulated horizontal shale well and will target a ~3,000 metre drilled and cased horizontal section. C-5H will have a planned measured depth of >5,000 metres and is expected to take approximately 45 days to drill and case.

C-5H is being drilled from the same well pad as Carpentaria-2H and 3H. C-5H will be drilled with a longer lateral length and larger well diameter. This will allow a longer section of the shale to be stimulated and produced (3,000 metres) and for the stimulation to be delivered more effectively through the larger well diameter. These changes are intended to deliver higher gas production rates than previous wells.

Following drilling operations, C-5H will be hydraulically stimulated. With a focus on increasing productivity, the well will be stimulated with greater horsepower, greater proppant concentration and greater fluid concentration. Furthermore, unlike previous Carpentaria wells, a single slickwater design is planned across the entire horizontal section.

At the time of this release, C-5H had reached a depth of 315 metres and was drilling ahead in the surface hole section.

Traditional Owner Welcome to Country Ceremony

On Friday 15th November, the day prior to the commencement of drilling operations, traditional owners of the land on which C-5H is being drilled held a smoking ceremony to welcome the team to their country and to protect the workers on site.

The traditional owners have given the well the Aboriginal name Jijimhunja, which represents a small beetle that burrows into the ground.

Empire is committed to working with the traditional owners of the lands on which we operate, including the provision of employment and other benefits. Empire is presently employing traditional owners on the C-5H well pad and we thank them for their service to our company.

As announced to the ASX on Friday 15th November, Empire is working with the Northern Land Council to facilitate an on-country meeting with traditional owners to seek their consent for the sale of gas under the Beneficial Use of Test Gas provisions of the NT Petroleum Act. This decision meeting will follow consultation meetings with traditional owners that occurred in August 2024.

*To view tables and figures, please visit:

https://abnnewswire.net/lnk/U252YW1C

About Empire Energy Group Ltd:

Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) is a Sydney based Australian oil and gas company holding 100%-owned and operated assets with unconventional targets in the Northern Territory Beetaloo Sub-basin and central trough of the McArthur Basin.

Empire is an active Beetaloo Sub-basin operator, focused on maturing its assets to production. Following the successful appraisal drilling and flow testing of the Carpentaria-2H and 3H wells in Empire's EP187, Empire is targeting first gas flow in H1 2025 at its Carpentaria Pilot Project. The Pilot has a targeted sales gas rate of up to 25 TJ per day utilising the existing McArthur River Pipeline.

Contact:Empire Energy Group Ltd
E: info@empiregp.net
T: +61-2-9251-1846
F: +61-2-9251-0244
WWW: www.empireenergygroup.net

Source:

Empire Energy Group Ltd

COMTEX_459905853/2525/2024-11-17T18:03:46