Processing plant purchase a tipping point for Empire Energy

Beetaloo player Empire Energy has put a date on when it hopes to be producing onshore gas. Read when it will be.

Beetaloo gas player Empire Energy has bought a fit-for-purpose gas processing facility to support development of the Carpentaria pilot project.

Empire acquired AGL Limited’s Rosalind Park Gas Plant for $2.5m.

The purchase comes at an important time for the gas start-up, with stakeholder and community consultations commencing for the Carpentaria pilot project.

The company will use the engagement to prepare an environment management plan for its high-profile Beetaloo project.

Imperial has drilled four wells in the Beetaloo including Carpentaria-3H, the longest horizontal section of any Australian onshore well.

Following encouraging flow test results, managing director Alex Underwood said Empire was planning to move into the appraisal stage of its exploration program through development of the Carpentaria Pilot Project.

Empire Energy chief executive Alex Underwood.

Empire intends to undertake a multi-year appraisal program at the western end of its EP187 well, commencing next year.

The well-testing program is required to determine whether development of the shale gas reservoir is commercially viable.

The RPGP had a design capacity of 42 terajoules a day and supported AGL’s Camden gas project until it quit production in August.

The cost of acquiring a fit-for-purpose, pre-loved facility could save Empire up to $30m compared with the cost of building a new plant.

It will be dismantled and driven to Darwin for assembly at the Beetaloo.

Mr Underwood said the facility had passed the company’s stringent technical due diligence process.

“This is a material development for Empire, its shareholders and all stakeholders involved in the development of the Beetaloo Sub-basin, and the substantial economic benefits and energy security that Empire’s Beetaloo project can provide for all Australians,” Mr Underwood said.

AGL’s Rosalind Park Gas Plant in Camden. Britta Campion / The Australian.

“The Rosalind Park Gas Plant has been very well managed by AGL during its time processing gas for supply into the Sydney market and meets the specifications Empire requires for processing its low CO2 Beetaloo gas for supply into NT market and Australian East Coast markets from the EP187 Carpentaria pilot project, and in future larger scale development scenarios.

“This comes at a critical time for energy security for the NT market, given that existing sources of supply continue to decline.”

Mr Underwood said success establishing the Carpentaria pilot project would deliver twin benefits – generating material cash flow to support our ongoing growth and demonstration of the long-term deliverability of development wells in the Beetaloo Basin.

“This will all the while reduce the emissions that would otherwise result from flaring test gas,” Mr Underwood said.

“The Empire team continues its hard work progressing towards a final investment decision for the pilot project, and is targeting the field installation of the RPGP, drilling of development wells and connection of the project to the McArthur River Pipeline in next year’s Dry Season, which would result in gas sales commencing in 2025.”