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Empire Energy Group (ASX:EEG) generates strong initial gas flow rates at Carpentaria-2H

ASX News, Energy
ASX:EEG      MCAP $164.3M
11 August 2022 16:46 (AEST)

Flow testing underway at Carpentaria-2H in EP187. Source: Empire Energy Group (EEG)

Empire Energy Group (EEG) sustained its highest gas flow of the Carpentaria-2H well in its wholly-owned and operated EP187 tenement in the Beetaloo Sub-basin, Northern Territory.

The well achieved a 2.6 million standard cubic feet (mmscf) per day initial flow rate over the first 91 hours of flow testing with minimal decline in gas flow rate over this period.

A flow rate was achieved from 927 metres effective stimulated horizontal length indicating a normalised rate of 2.8 mmscf per day per 1,000m of horizontal section, with minimal decline in production rate seen to date over the first 91 hours.

Managing Director Alex Underwood called the initial gas flow rate an outstanding achievement, and a historic moment in the advancement of the Beetaloo Basin.

“Strong and stable gas production rates, coupled with slowing water production, have given the Empire team enhanced confidence that we are rapidly approaching demonstration that the project is commercially viable, particularly given the significant cost advantage compared to other parts of the basin.

“These learnings, to be incorporated into our completion design for Carpentaria-3H, are likely to drive even stronger production rates in that well and future wells, consistent with the learning curves that were achieved across the major US shale basins.”

Alongside the flow rate, the company said that 27.8 per cent of injected fluids recovered while strong gas rates sustained without any artificial lift required, which demonstrates a strong reservoir drive.

Empire intends to apply the most productive systems when stimulating the Carpentaria-3H well to be drilled later in 2022.

The company confirmed that flow testing is continuing at C-2H.

On market close, shares in Empire were up 18.8 per cent, trading at 28.5 cents.

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