Empire Energy (ASX:EEG) has kicked off drilling at its Carpentaria project straddling the Beetaloo Basin in the Northern Territory.
Results will be closely watched – the Beetaloo Basin is potentially Australia’s next big gas field and has long been a staple of the NT government’s desires to see the Top End become a resource powerhouse.
Currently, the NT’s – or Darwin’s – best known gas asset is INPEX’s offshore development Ichthys.
The NT has had in place a “Territory Gas Plan” since mid-2023, though the introduction of the new Country Liberal state government since then could see that shaken up.
At the same time, it’s a clear bipartisan winner – jobs and growth – suggesting the Beetaloo will likely remain of hot interest. And that all, of course, depends on Empire Energy hitting concentrations of gas underground that the market likes.
Drill bits started turning over the weekend on Saturday and the company anticipates a slow and steady run – its first well, Carpentaria-5H (C-5H), will take some 45 days to complete.
C-5H will form part of a larger pilot project which is intended, zooming out, to act as a test of concept over at least one element of the Beetaloo Basin.
All cards in order, the company sees gas sales kicking off next year.
“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,” EEG MD Alex Underwood said.
“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.”
EEG last traded at 20cps.
Join the discussion: See what HotCopper users are saying about Empire Energy and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.