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Empire Energy (ASX:EEG) receives up to $21m funding from government

Energy
ASX:EEG      MCAP $169.1M
08 July 2021 12:35 (AEST)
Empire Energy Group (ASX:EEG) - Managing Director, Alex Underwood

Source: HotCopper

The Federal Government has approved a grant of up to $21 million for Empire Energy (EEG) under the Beetaloo Cooperative Drilling Program.

The program was announced by the Australian Government earlier this year as part of its gas-fired recovery strategy. It provides $50 million of funding towards exploration activity that is carried out by the end of 2022.

The aim of the program is to encourage explorers to accelerate their work
programs at the Beetaloo Subbasin in the Northern Territory (NT).

Empire is the first company to have received approvals for the grant funding under the program.

Funding will support drilling and flow testing of up to three fracture stimulated horizontal appraisal wells in the EP187 tenement, as well as additional seismic acquistion and other associated costs.

Currently, Empire is planning for its first fracture stimulated horizontal appraisal well, later this year, which is well advanced and fully funded.

Managing Director Alex Underwood is pleased with the award to support Empire’s exploration in the Beetaloo sub-basin.

“Our planning for further seismic acquisition, and the drilling and completion of our first horizontal well, which will benefit from this grant funding, is progressing well,” he said.

“The NT Government approval process is well advanced and our subsurface and operational teams are carrying out preparatory engineering and drilling design works to prepare for this next phase of our field programs.”

On the market, Empire was up 3.23 per cent, trading at 32 cents per share at 2:28 pm AEST.

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