- Term sheet executed for Valaris 107 drilling rig
- Judith-2 to appraise the largest undeveloped conventional gas field on Australia’s East Coast
- Emperor has paid US$1.5 million upon execution of the term sheet
- Judith-2 environmental plan has been resubmitted to NOPSEMA
Emperor Energy (ASX:EMP) has entered into a term sheet to drill an appraisal well on the Judith gas field the largest undeveloped conventional gas field on the East Coast of Australia.
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The agreement with the Valaris subsidiary ENSCO Australia is to secure the provision of the Valaris 107 jack-up drilling rig to drill the Judith-2 appraisal well, targeted for April 2027.
The term sheet sets out the principal commercial terms for the drilling campaign and secures the availability of Valaris 107 for an estimated period of 30 days to drill the well and a subsequent 15 days for flow testing.
It also provides an option for Emperor to extend the operation to include an additional side track well.
Under the Term Sheet, Emperor has paid US$1.5 million upon execution of the term sheet with a further US$2.0 million to be paid upon execution of the full-form drilling contract.
Emperor and Valaris are targeting execution of the full-form drilling contract by 31 October 2026, with all remaining contractual terms to be finalised during the next two months.
Valaris 107 is currently operating in the offshore Gippsland Basin and will continue to undertake further drilling activities in the region for other operators before moving to the Judith-2 appraisal well.
“The Valaris 107 jack-up drilling rig is operating nearby at a very high level of safety, efficiency and productivity. Securing this drilling rig for April 2027 is a major step forward for Emperor Energy as the company pushes forward towards drilling the Judith-2 appraisal well,” CEO, Tim Handley, said.
Emperor Energy has submitted a revised version of the Judith-2 appraisal well environmental plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) in response to a request for additional information. Emperor Energy now expects final EP approval by the end of September 2026.
The Judith field has been assessed to contain 166 billion cubic feet (BCF) of 2C contingent recoverable gas resource along with 1,859 BCF of P50 prospective recoverable gas resource.
Gas was discovered in the Judith field in 1989 by the Judith-1 exploration well drilled by Shell Australia. At that time, the discovered gas resource was not considered for further development given market conditions and an abundance of existing gas supply from other fields in the Gippsland Basin.
Emperor Energy has reassessed all available data from the field including that of a recent 3D seismic survey. This reassessment has resulted in Emperor Energy now considering that a substantial economic gas resource exists at Judith.
Mr Handley said the Judith-2 appraisal well drilling program will enable a detailed appraisal of this gas resource and if successful will provide Victoria with additional gas reserves as production from existing fields declines.
EMP was down 1.30% to 7.6¢ with a Mkt cap of $75.17M.
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