Empire Strikes Liquids Rich Gas in Northern Territory

Australia's Empire Energy has encountered liquids rich gas in the Velkerri shale at its 100% owned and operated Carpentaria-1 exploration well at permit EP187 in the Northern Territory’s Beetaloo sub-basin, it said on October 12.

“Empire has intersected an extensive interval of liquids rich gas in the Velkerri shale based on mud gas liquids readings,” it said. “The proportion of liquids rich gas intersected in the Velkerri dramatically exceeds that of analogue wells previously drilled across the Beetaloo basin and materially exceeds Empire’s pre-drill expectations.”

The company believes that substantial proportions of heavier end, higher value liquid hydrocarbons indicated in the target Velkerri shale will materially enhance the economics of any future EP187 production, as liquid hydrocarbons can fetch higher oil-linked prices than dry gas.

“We will now further appraise the Velkerri shale sequences with an extensive formation evaluation programme commencing within the week. Fracture stimulation and flow testing is scheduled for Q2 2021, which in the success case will allow Empire to book maiden contingent resources including higher value liquid hydrocarbons not previously expected,” managing director Alex Underwood said.

Empire is a junior explorer with onshore oil and gas shale assets. Its 100%-owned subsidiary Imperial Oil & Gas holds acreage position in the McArthur-Beetaloo basins.