- The Federal Court has ruled that Empire Energy Group (EEG) will not receive funding for the Beetaloo drilling program
- Earlier this year, the Federal Government approved up to $21 million to speed up fracking in the Beetaloo Basin, located in the Northern Territory
- The government awarded the money while there was a court challenge underway, but the court has now labelled this “unreasonable”
- The parties now plan to work together to negotiate new grant agreements
- On market close, Empire was in the grey and trading at 34 cents per share
Empire Energy Group (EEG) will not receive its funding for the Beetaloo drilling program as the Federal Court declines.
Earlier this year, the Federal Government approved up to $21 million to speed up fracking in the Beetaloo Basin. Notably, the funds were to be sent to Empire’s subsidiary, Imperial Oil & Gas.
The government awarded the money while there was a court challenge underway, which the court today labelled this as “unreasonable.”
As no funds has been officially sent, no funds are repayable to the Commonwealth.
EEG now plans to work with the Commonwealth to negotiate new grant agreements.
Empire is fully funded to frack the Carpentaria-2H well, which is scheduled for the second quarter of 2022, with a current cash balance of $22.4 million.
“The court decision has no impact on the environmental approvals in place with the Northern Territory Government and Empire presently intends to proceed with its work programs as planned,” the company said.
On market close, Empire was in the grey and trading at 34 cents per share.