Empire Energy to Study McArthur Basin Shale Resources

Empire Energy, through its subsidiary Imperial Oil & Gas Pty Ltd, has entered into an agreement with University of Adelaide’s Kennedy Research Group (KRG) for study of Imperial’s exploration license applications in the McArthur Basin, Northern Territory to identify the most prospective areas for shale oil and gas drilling.

The principal exploration target is unconventional gas and oil in thick carbonaceous shales deposited predominantly within the central trough of the McArthur Basin.

Over the next 12 months Imperial will work closely with KRG to develop a hydrocarbon system model capable of extending predictions of source rock and shale oil and gas potential in the McArthur Basin.

The study will utilize the available data combined with generation of critical information (maturity, sediment composition) to calibrate hydrocarbon system models and produce prospectivity maps to guide site location of initial exploration wells, expected during 2012, to coincide with the issue of the initial 3 exploration licenses.