Empire Energy is reporting good gas flows at its Beetaloo prospect

Empire Energy is reporting good gas flow prospects from its Beetaloo prospect, revealing what’s next for the contentious project.

High value, low carbon-dioxide gas is flowing from Empire Energy’s Carpentaria-2H well in the Beetaloo basin.

And the company told the Australian Stock Exchange this week it is continuing development planning for final investment decision on a proposed pilot project.

Titled ‘C-2H flow testing complete following continued strong gas rates’, the ASX statement details strong flow rates during testing at Carpentaria-2H.

Key points from the statement included gas composition remained consistent with “high calorific value and extremely low CO2” and a continuation of “development planning for pilot project final investment decision”.

Empire Energy chief executive Alex Underwood

“A normalised flow rate of 2.75 Terajoules per day per 1000 metres for the 127 day test period,” the company reported.

“The post-soak 2023 30-day flow-rate is now confirmed at 3.5 Terrajoules per day per 1000 metres.

“Multiple parties are expressing strong interest in purchasing Empire’s Beetaloo gas in both the pilot phase and full development phase.”

Empire Energy chief executive Alex Underwood said the results “provide further confidence” that an economic development at the company’s Beetaloo prospects may be achievable.

Alex Underwood and Nicole Manison at the site of Carpentaria 2 last year

Based on a $10 per gigajoule gas price, the well could generate more than $10m in gross revenue before royalties over 127 days of commercial production.

“Following recent regulatory implementation by the NT government giving the Beetaloo a ‘green light’ to move into commercial production, and an extremely tight domestic gas market, line of sight towards commercialisation is getting clearer by the day,” Mr Underwood said.

The statement said Empire intended going forward to measure gas volumes in Terajoules (TJ) and Petajoules (PJ) to reflect the basis on which Australian gas contracts are negotiated.

The company expects the “high calorific” value of its gas to attract a price premium over dry gas.

Empire Energy and Tamboran Resources are the two leading players in the drive to develop an onshore gas industry in the Northern Territory.

Earlier this month the Fyles government gave the green-light to development at Beetaloo after implementation of recommendations from the Pepper Inquiry.