Announcement • Jun 06
Beetaloo Energy Australia Limited has completed a Follow-on Equity Offering in the amount of AUD 66.744 million. Beetaloo Energy Australia Limited has completed a Follow-on Equity Offering in the amount of AUD 66.744 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 236,835,714
Price\Range: AUD 0.28
Discount Per Security: AUD 0.014
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,535,714
Price\Range: AUD 0.28
Transaction Features: Subsequent Direct Listing Announcement • May 27
Beetaloo Energy Australia Limited has completed a Follow-on Equity Offering in the amount of AUD 5 million. Beetaloo Energy Australia Limited has completed a Follow-on Equity Offering in the amount of AUD 5 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 17,857,143
Price\Range: AUD 0.28
Discount Per Security: AUD 0.014 New Risk • Apr 23
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 46% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (46% increase in shares outstanding). Revenue is less than US$1m. Announcement • Apr 10
Beetaloo Energy Australia Limited has filed a Follow-on Equity Offering in the amount of AUD 66.744 million. Beetaloo Energy Australia Limited has filed a Follow-on Equity Offering in the amount of AUD 66.744 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 236,835,714
Price\Range: AUD 0.28
Discount Per Security: AUD 0.014
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 1,535,714
Price\Range: AUD 0.28
Transaction Features: Subsequent Direct Listing Major Estimate Revision • Apr 07
Consensus revenue estimates increase by 14%, EPS downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from AU$30.3m to AU$34.6m. EPS estimate fell from -AU$0.0023 to -AU$0.0032 per share. Oil and Gas industry in Australia expected to see average net income growth of 24% next year. Consensus price target up from AU$0.58 to AU$0.66. Share price rose 3.0% to AU$0.34 over the past week. New Risk • Oct 11
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: AU$3.0m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m (AU$14k revenue, or US$9.1k). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$66m). Shareholders have been diluted in the past year (22% increase in shares outstanding). Significant insider selling over the past 3 months (AU$3.0m sold). New Risk • Jun 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m (AU$1.0m revenue, or US$668k). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (17% increase in shares outstanding). New Risk • Jun 24
New major risk - Revenue and earnings growth Earnings have declined by 9.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 9.8% per year over the past 5 years. Revenue is less than US$1m (AU$1.0m revenue, or US$664k). Minor Risk Shareholders have been diluted in the past year (17% increase in shares outstanding). Breakeven Date Change • Jun 23
Forecast to breakeven in 2027 The 2 analysts covering Beetaloo Energy Australia expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of AU$1.20m in 2027. Average annual earnings growth of 77% is required to achieve expected profit on schedule. New Risk • May 24
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m (AU$1.0m revenue, or US$664k). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (AU$300k net loss in 3 years). Shareholders have been diluted in the past year (25% increase in shares outstanding). New Risk • Apr 04
New major risk - Revenue size The company makes less than US$1m in revenue. Total revenue: AU$1.0m (US$646k) This is considered a major risk. Companies with a small amount of revenue are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (32% increase in shares outstanding). Revenue is less than US$1m (AU$1.0m revenue, or US$646k). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$38m). Currently unprofitable and not forecast to become profitable over next 3 years (AU$300k net loss in 3 years). Announcement • Mar 31
Empire Energy Group Limited, Annual General Meeting, May 29, 2025 Empire Energy Group Limited, Annual General Meeting, May 29, 2025. Announcement • Jan 17
Empire Energy Group Limited Announces Executive Changes Empire Energy Group Limited announced that Mr. Ben Johnston has resigned as Company Secretary of Empire and its subsidiaries, Imperial Oil & Gas Pty Limited and Imperial Oil & Gas A Pty Limited with effect from 17 January 2025. Mr. Johnston will be replaced by Ms Gillian Nairn as Company Secretary with effect from 17 January 2025. Ms Nairn is a senior corporate governance professional and company secretary with significant experience working with listed entities. She has more than 20 years legal and governance experience gained in private practice and in various in-house and consulting roles across a variety of sectors including resources. New Risk • Jan 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 32% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (32% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable next year (AU$16m net loss next year). Revenue is less than US$5m (AU$6.1m revenue, or US$3.8m). New Risk • Jan 09
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: AU$24m Forecast net loss in 1 year: AU$16m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable next year (AU$16m net loss next year). Shareholders have been diluted in the past year (32% increase in shares outstanding). Revenue is less than US$5m (AU$6.1m revenue, or US$3.8m). Breakeven Date Change • Dec 31
Forecast to breakeven in 2027 The 2 analysts covering Empire Energy Group expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of AU$6.59m in 2027. Average annual earnings growth of 70% is required to achieve expected profit on schedule. Announcement • Jul 02
Empire Energy Group Limited Appoints Chris White as Chief Operating Officer Empire Energy Group Limited announced the appointment of Mr. Chris White as chief operating officer. Chris has 25 years' experience commercializing and developing Australian onshore unconventional gas resources. Chris joins Empire following 18 years at Origin Energy in the roles of General Manager Upstream Growth, General Manager Exploration and New Ventures, Group Manager Field Development Optimization, Production Optimization Manager and Petroleum Engineering Team Leader. Prior to Origin, Chris was a Project Manager for gas infrastructure projects at Laing O'Rourke UK, and a Petroleum Engineer at Queensland Gas Company. Chris has a demonstrated track record leading multidisciplinary teams. He has been instrumental in proving the commerciality of onshore unconventional gas resources in Queensland, driving rapid reserves growth, building production to export scale, delivering production outcomes exceeding FID assumptions to fill two Australia Pacific LNG trains at Gladstone, delivering successful exploration campaigns across multiple basins including the Beetaloo Basin, and helping deliver multibillion dollar investments by attracting joint venture partners. Chris will play an important role in Empire's transition from explorer to producer focused on the Beetaloo Basin. Chris has a Bachelor of Engineering (Petroleum) from the University of NSW. New Risk • Apr 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (AU$16m net loss in 2 years). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (AU$6.1m revenue, or US$4.0m). Announcement • Apr 17
Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 39 million. Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 39 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 193,321,700
Price\Range: AUD 0.16
Discount Per Security: AUD 0.008
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 50,428,300
Price\Range: AUD 0.16
Discount Per Security: AUD 0.008
Transaction Features: Subsequent Direct Listing Reported Earnings • Mar 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: AU$0.029 loss per share (further deteriorated from AU$0.009 loss in FY 2022). Net loss: AU$22.1m (loss widened 268% from FY 2022). Revenue missed analyst estimates by 20%. Earnings per share (EPS) also missed analyst estimates. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Announcement • Mar 28
Empire Energy Group Limited, Annual General Meeting, May 28, 2024 Empire Energy Group Limited, Annual General Meeting, May 28, 2024, at 09:30 E. Australia Standard Time. Location: Level 2, 259 George Street, Sydney NSW 2000 Sydney New South Wales Australia New Risk • Jan 20
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-AU$35m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable next year (AU$3.9m net loss next year). Share price has been volatile over the past 3 months (12% average weekly change). Market cap is less than US$100m (AU$135.3m market cap, or US$89.3m). Announcement • Nov 17
Empire Energy Group Limited Announces Changes to Board of Directors Empire Energy Group Limited announced that Mr. Paul Fudge and Ms. Jacqui Clarke have retired as a Non-Executive Director and alternate Director of the Company. Mr. Fudge is Empire's larger shareholder and the founder of Pangaea Resources ("Pangaea"). Mr. Fudge is one of Australia's most successful investors in unconventional gas development and was one of the early movers into the Northern Territory's Beetaloo Sub-basin. Empire also announced the appointment of Ms. Karen Green as an independent Non-Executive Director with effect from 17 November 2023. Ms. Green will also be appointed Chair of the Audit & Risk Committee. Ms. Green will stand for election at Empire's 2024 Annual General Meeting to be held during May 2024. Karen has 36 years' experience in business advisory services in Western Australia and Northern Territory ("NT"). She has lived in the NT since 1991 where she was an equity partner in the Deloitte Australian partnership for over 20 years. Karen was the Office Managing Partner of Deloitte in the NT for several years and the 5th female ever to become a Partner in the Deloitte Australia partnership. Following her resignation from the Deloitte partnership in 2020, Karen established Advisory HQ which is a collective of highly respected long-term residents of the NT delivering growth for Northern Australian businesses and organisations. Karen has worked alongside a number of family groups as their trusted business advisor and acted as an advisor to numerous public and private sector clients in Northern Australia, including consultation, facilitation, and development of strategic plans and financial strategies. Karen has extensive experience in providing business plans, stakeholder engagement, development plans, strategic planning, and investment attraction to the private and public sector. Karen has also been an Advisory Board Member of a number of emerging companies. Karen is recognised for her strategic direction and leadership through a variety of board roles including currently as a Non-Executive Director of the Airport Development Group Pty Ltd. (the long term lease holder of Darwin International Airport, Alice Springs Airport and Tennant Creek Airport), NT National Security Advisory Group, Member of Investment Advisory Group for Department of NT Chief Minister and Cabinet, Chair of the NT Screen Industry Advisory Committee and the NT Council of the Australian Institute of Company Directors. Reported Earnings • Sep 17
First half 2023 earnings released: AU$0.011 loss per share (vs AU$0.004 loss in 1H 2022) First half 2023 results: AU$0.011 loss per share (further deteriorated from AU$0.004 loss in 1H 2022). Net loss: AU$8.31m (loss widened 248% from 1H 2022). Revenue is expected to fall by 7.3% p.a. on average during the next 2 years compared to a 2.1% decline forecast for the Oil and Gas industry in Australia. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Breakeven Date Change • Sep 13
No longer forecast to breakeven The analyst covering Empire Energy Group no longer expects the company to break even during the foreseeable future. The company was expected to make a profit of AU$4.42m in 2023. New forecast suggests the company will make a loss of AU$3.62m in 2024. New Risk • Sep 12
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: AU$6.0m Forecast net loss in 2 years: AU$3.6m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-AU$32m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (AU$3.6m net loss in 2 years). Market cap is less than US$100m (AU$112.1m market cap, or US$72.0m). Board Change • Jun 08
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Director Lou Rozman was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 30
Empire Energy Group Limited Announces Board Changes Empire Energy Group Limited announced that Mr. Paul Espie AO will retire as Chairman and Non-Executive Director of Empire, at the conclusion of Annual General Meeting of the Company, effective 30 May 2023. Empire announced the appointment of Mr. Peter Cleary as Chairman of the Board, effective 30 May 2023 at the conclusion of Annual General Meeting. Mr. Cleary is a leader in the oil and gas sector. He holds relationships with commercial and government entities gained over a distinguished 29-year career representing Santos, the North West Shelf Venturers and BP in Asia. His executive career was in LNG, pipeline gas and chemicals operations. Mr. Cleary was first elected to the Board on 14 July 2020. He is currently a Senior Consultant with Diamond Gas International, Mitsubishi Corporation’s LNG marketing and business development subsidiary, as well as Shinka Management, a group that advises on the application of Japanese productivity practices to clients in 26 counties. He is a member of the Executive Committee of the Australia Japan Business Co-operation Committee and the Australia Korea Business Council. Reported Earnings • Mar 30
Full year 2022 earnings released: AU$0.009 loss per share (vs AU$0.024 loss in FY 2021) Full year 2022 results: AU$0.009 loss per share (improved from AU$0.024 loss in FY 2021). Net loss: AU$6.00m (loss narrowed 46% from FY 2021). Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Jan 12
Empire Energy Group Limited Announces Carpentaria-3H Hydraulic Stimulation and Carpentaria-4V Drilling Successfully Completed, Flow Testing Program Underway Empire Energy Group Limited completed hydraulic stimulation operations at C-3H on 11 January 2023. 40 hydraulic stimulation stages were executed along an effective 1,989 metre section of the 2,632 metre horizontal wellbore. Of these 40 stages, 35 were executed in the B Shale target window along an effective 1,655 metre section. An additional 5 stages were executed in other intervals of lower mud gas over the remaining 334 metres to assess those intervals' deliverability. A total of 12.8 million lbs 1 of proppant was placed averaging 319,000 lbs per stage and 1,956 lbs per foot along the wellbore. Leveraging the knowledge gained during C-2H operations, a selection of hydraulic stimulation fluids was utilised, specifically 16 Crosslink stages, 3 Slickwater stages and 21 hybrid stages. Completion strategies were also further refined, including perforation technique, pumping plan and proppant concentration. Wellbore clean out operations using coiled tubing have commenced, with flow back of hydraulic stimulation fluids to be undertaken shortly. Empire will then commence a 90-day Extended Production Test. Flowback and production testing will be managed to establish long term reservoir deliverability for future development planning and will be incorporated into the planning and design for the planned pilot project which aims to supply first commercial gas from the Beetaloo 2. The forecast total cost for the C-3H hydraulic stimulation operations and EPT is $17.3 million, which is $3.6 million below the risked budget of $20.9 million. Empire has paid $8.9 million of the forecast total cost to date and the C-3H hydraulic stimulation operations are expected to benefit from grant proceeds under the Australian Government's Beetaloo Cooperative Drilling Program. The vertical appraisal C-4V well, which commenced drilling on 15 December 2023, reached a total depth of 2,000 metres in 12 days on 27 December 2023. The well targeted and intersected the same stacked Velkerri Formation shales as the Carpentaria-1 and Carpentaria-2 wells. Following an extensive wireline formation evaluation program, that included rotary sidewall cores, the well was plugged back to surface casing for potential future horizontal development drilling. The drilling program concluded on 5 January 2023 and the rig has been released for demobilisation. The thickness and depths of each of the target shales was as prognosed pre-drill, reconfirming Empire's subsurface modeling. Elevated mud gas was observed through the target shales as anticipated and as encountered in the C-1, C-2 /2H and C-3H wells. The intersected stacked shale sequences have demonstrated consistent thickness throughout the Carpentaria resource area of EP187, with the C-4V well intersecting moderately drier gas than C-1 and C-2 due to greater depth of burial. The shales are 150 metres deeper than at the C-3H location, which will have a positive impact on gas storage and provide additional pressure support to drive enhanced gas flow rates in future development scenarios. During the first quarter of 2023, Empire's technical team will further analyse well data to mature Prospective Resources to Contingent Resources in the Carpentaria East Area, where C-4V is located, and to advance resource characterisation for development planning. Empire will also source an updated independent resource assessment for EP187. The forecast total cost for the drilling of C-4V is $9.8 million which exceeded the risked estimate by $0.8 million due to weather related delays. Empire has paid $5.1 million of the forecast total cost to date and C-4V drilling is expected to benefit from grant proceeds under the Australian Government's Beetaloo Cooperative Drilling Program. The cost of C-4V access tracks and wellpad construction completed earlier in 2022 was $1.6 million which was $0.4 million under the risked budget. These access tracks and wellpad costs are once-off and several wells can be established on the wellpad in future development scenarios. Notwithstanding a delay in the rig move between C-3H and C-4V due to wet weather, the combined C-3H and C-4V work program is forecast to be under risked budget by approximately $5.5 million. Announcement • Dec 08
Empire Energy Group Limited Provides Update on Beetaloo Operations Empire Energy Group Limited has mobilised a PLT to log C-2H and will flow the well while running the PLT for approximately 2 days. The well is being choked back to maintain a relatively constant rate of ~2 mmcf per day while the PLT is run. The PLT will provide Empire's technical team with highly detailed production data for each fracture stimulation cluster within each stage and will be combined with previously collected tracer data to better understand how each cluster and stage contribute to aggregate production. The data will assist Empire to tailor its fracture stimulation completion strategy including perforation strategy, proppant concentration, fluid mix and pump schedule for the fracture stimulation operations on C-3H and future wells. In the success case, this test will allow Empire to identify which of the fracture stimulation designs utilised in C-2H are more productive than others, so that in future wells including C-3H, Empire will be able to optimise fracture stimulation design to generate more gas production per stage and therefore drive up overall well productivity. Carpentaria-3H Update: Empire will commence fracture stimulation of C-3H imminently. The plan is to stimulate up to 40 stages across approximately 2,000 metres (6,562 ft) of the 2,632 metre (8,635 ft) horizontal section with stages at a nominal ~50 metre (164 ft) spacing. The planned program at C-3H is double the size of the C-2H program where Empire successfully fracture stimulated 21 stages across a 927 metre (3,041 ft) horizontal section. The planned C-3H fracture stimulation program will be the largest fracture stimulation operation in the Beetaloo Basin to date and in the history of the Australian onshore oil & gas industry. The C-3H activities demonstrate yet again that Empire is leading Beetaloo Basin momentum to maximise production flow rates and optimise costs. The C-3H fracture stimulation design will benefit from the significant learnings from C-2H fracture stimulation specific to the Beetaloo Basin, and subsequent flow testing, which Empire expects will enhance well productivity and assist in further reducing company's cost base. Carpentaria-4V Update: After a short delay caused by recent rainfall, the mobilization of Schlumberger Land Rigs 185 to the C-4V drilling site is now well underway. Mobilisation is nearly complete, and drilling will commence immediately thereafter. The principal goal of the C-4V drilling program is to demonstrate that the Velkerri shales in the Western part of EP187 extend into the Carpentaria East area. In the success case, this may result in a material increase in independently assessed contingent (i.e. discovered) resources across the tenement. Announcement • Dec 02
Empire Energy Group Limited Announces Beetaloo Operations Update Empire Energy Group Limited announced 4 ½" production casing has been successfully run and cemented in 2 days following the drilling of the 4,460 metre (14,633 ft) well. The production casing program was fully executed as programmed to maximise the available wellbore and optionality for the upcoming fracture stimulation and the extended production testing program at C-3H scheduled to commence in early December 2022. A comparison to other recent analogue Beetaloo wells is included in Appendix A to this announcement. The C-3H well, which targets the Velkerri-B shale formation and includes a Beetaloo record- breaking 2,632 metre (8,635 ft) horizontal section, was drilled on time and under budget in 39 days from drilling commencement to rig release on 21 November 2022. Empire's 3,150 metre (10,335 ft) Carpentaria-2H (C-2H) well which included a 1,345 metre (4,413 ft) horizontal section also took 39 days from drilling commencement to rig release, demonstrating Empire's ongoing rapid learning curve. Empire is currently mobilising to undertake the programmed ~2,000 metre (~6,500 ft) fracture stimulation optimised over the length of the C-3H horizontal section this year. The C-3H fracture stimulation design will benefit from cutting-edge technological learnings from Empire's C-2H fracture stimulation and flow testing program, which is likely to enhance well productivity, particularly flow rates. Carpentaria-4V Update: Following the release from C-3H, Schlumberger Land Rigs 185 is being moved to drill the vertical C-4V appraisal well in the adjoining Carpentaria East Area. Empire expects to commence drilling in early December. Announcement • Nov 17
Empire Energy Group Limited Announces Longest Ever Beetaloo Horizontal Well Drilled Empire Energy Group Limited announced C-3H drilled to total depth of 4,460 metres on time and under budget. Total horizontal section length of 2,632 metres drilled, of which 2,374 metres was successfully placed within the target Velkerri-B shale formation, with strong gas shows throughout the target shale zone. This represents by far the longest horizontal section drilled in the Beetaloo to date. Forecast total cost for C-3H drilling of <$11 million compares favourably to Carpentaria-2H and is a small fraction of the cost of drilling deeper Beetaloo wells. Fracture stimulation operations and production testing of C-3H, fully funded from existing cash at bank, scheduled to commence in early December 2022. C-3H fracture stimulation design will benefit from cutting edge technological learnings from Empire's recent C-2H fracture stimulation and flow testing program, which is likely to enhance well productivity, particularly flow rates. Drilling of C-4V scheduled to commence in the coming weeks following mobilisation of the rig from the C-3H location. Empire has received a Research and Development Tax Offset of $7.8 million in cash and a GST refund of $1.6 million in cash following processing of its September Business Activity Statement. Incredibly tight Australian gas market conditions are driving significant commercial interest from potential customers for Empire's low CO2 gas which is likely to facilitate the company's rapid commercialisation strategy. "The successful drilling of Carpentaria-3H, on time and below budget, and without any recordable health and safety or environmental incidents, demonstrates that the Empire team continues to lead the development of the Beetaloo Basin. The final cost of drilling and casing this well is likely to be lower than the cost of Empire's first horizontal well, Carpentaria-2H, despite having double the length of horizontal section within the target Velkerri-B shale section, and lower than the cost of Empire's first vertical well, Carpentaria-1. This clearly demonstrates the rapid learning curve the company is progressing along, and further enhances the team's confidence that the company may be able to commercially extract very large volumes of gas from EP187. The Empire team believes that shallower acreage provides a development cost advantage. This has been reinforced by Carpentaria-3H horizontal well that was drilled for less than a third of the cost of the Maverick-1V vertical well recently drilled in the deepest part of the basin. In the success case, this may result in Empire's Beetaloo Basin gas being one of the lowest cost sources of large-scale gas supply into Australia's critically short East Coast gas market and ultimately into the Asian LNG market, which will require responsibly sourced gas supply for many decades to support the energy transition. Announcement • Oct 13
Empire Energy Group Limited Provides Update on Operations in Empire's 100% Owned and Operated EP187 Tenement, Located Onshore Northern Territory in the Beetaloo Sub-Basin Empire Energy Group Limited provided shareholders with this update of operations in Empire's 100% owned and operated EP187 tenement, located onshore Northern Territory in the Beetaloo Sub-basin (Beetaloo). Carpentaria-3H: The C-3H well has commenced drilling. Empire has contracted Schlumberger Land Rigs 185 to drill both C-3H and C-4V. C-3H will be a horizontal well with a planned 2,000 metre horizontal section that will be fracture stimulated. The well is being drilled from the same pad as C-2H, also targeting the B Shale of the Velkerri Formation but going downdip in the opposite direction. C-3H will further de-risk the project and optimise production rates by applying learnings from the fracture stimulation and flow testing of C-2H. Carpentaria-2H Operations: Flow back of stimulation fluids commenced at C-2H on 1 August 2022, immediately following placement of the well's 21 hydraulic stimulation stages. Gas flow commenced on 5 August 2022 with a period of significant but unmeasurable gas rates due to slug flow (gas with water production). Gas flow measurement began on 7 August 2022 and has flowed continuously since then, except for a 2-day operational shut-in to replace the hydraulic stimulation surface pipework with production pipework. Following that shut-in, a peak rate of >11 mmscf per day was achieved. The gas has been flowing through 4 ½" casing. Production tubing was not required. The average production rate over the first 51 days was 2.2 mmscf per day (a normalised rate of 2.4 mmscf per day per 1,000 metres of horizontal section). C-2H was producing at a rate of 1.82 mmscf per day prior to the recent shut-in. C-2H has been shut-in as planned to monitor pressure build-up and evaluate the impact on well productivity following a period of "soaking". Soaking is the practice of shutting in a well for a period of time following fracture stimulation to seek to improve long-term productivity through redistribution and/or interaction of the residual water with the rock. Productivity improvements have been achieved at other Beetaloo wells and in analogous US shale plays following the execution of such a strategy. Evaluation of production tracer data to understand how each of the 21 hydraulically stimulated stages at C-2H has contributed to the overall production has commenced. Results are expected to be available prior to the commencement of the fracture stimulation of C-3H. Learnings acquired from C-2H will be applied and adapted at C-3H to optimise completion and fracture stimulation design. The success of C-2H is an extremely encouraging step towards commerciality. It provided key information for future wells including: Beetaloo-specific horizontal well drilling methods; enhancement of Beetaloo-specific hydraulic stimulation fluid selection, perforation strategy, proppant concentration and pumping techniques; refinement of the target window for landing a Velkerri B Shale horizontal section; and understanding the high-calorific gas composition at Carpentaria. Empire is using this technical data to develop an early production type curve for development planning. Reported Earnings • Sep 15
First half 2022 earnings released: AU$0.004 loss per share (vs AU$0.019 loss in 1H 2021) First half 2022 results: AU$0.004 loss per share (improved from AU$0.019 loss in 1H 2021). Net loss: AU$2.39m (loss narrowed 62% from 1H 2021). Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Aug 22
Empire Energy Group Limited Announces Carpentaria-2H Continues Strong Production with Minimal Decline Empire Energy Group Limited provided shareholders with an update regarding the ongoing flow testing of the Carpentaria-2H ("C-2H") well in Empire's 100% owned and operated EP187 tenement, located in the Northern Territory's Beetaloo Sub-basin. Extended production testing ("EPT") of C-2H has continued with gas flowing at an average rate of 2.6 mmscf /day over the first 13 days of the EPT (a normalised rate of 2.8 mmscf /day per 1,000m horizontal section). The well is currently flowing at 2.5 mmscf /day. Following a period of initial "clean-up", the well was shut-in for 2 days to replace the hydraulic stimulation wellhead with a flow testing wellhead and to monitor pressure build-up. During the shut-in the formation pressure built very quickly to 1,275 psi from 185 psi before shut-in, which indicates excellent reservoir connectivity. Following the shut-in, the well recommenced production at >11 mmscf /day prior to returning to a stabilised rate of 2.5 mmscf /day for the last 7 days. Modifications to the C-2H flowback pipework undertaken during shut-in will allow the EPT to continue while Carpentaria-3H drilling commences on the same well pad later in third quarter 2022. Flow testing continues at C-2H. Announcement • Aug 11
Empire Energy Group Limited Provides Update on Ongoing Flow Testing of the Carpentaria-2H Well Empire Energy Group Limited provided shareholders with an update regarding the ongoing flow testing of the Carpentaria-2H ("C-2H") well in Empire's 100% owned and operated EP187 tenement, located in the Northern Territory's Beetaloo Sub-basin. Fluid flowback from C-2H has progressed, with 27.8 per cent of placed fluids recovered to date and water rates declining as the well continues to "clean up". It is particularly encouraging that C- 2H was able to "clean up" (i.e. lift the injected fluids through the well bore to surface) through 4 ½" casing without the need for installation of smaller diameter 2 7/8" production tubing or any artificial lift assistance such as nitrogen enhancement. Gas flow from C-2H commenced on 5 August 2022 at significant but unmeasurable rates due to slug flow1. Measured gas flow commenced at 10am on 7 August 2022 and has stabilised at an average rate of 2.6 mmscf per day across the stimulated horizontal section of 927 metres (a normalised rate of 2.8 mmscf per day per 1,000 metres) with minimal decline in production rate seen to date over the first 91 hours. The well is currently flowing at 2.5 mmscf per day. Empire successfully placed 6,283,200 pounds of proppant across the 927 metre (3,041 foot) stimulated horizontal section, representing proppant concentration of 2,066 pounds per foot. As previously announced, Empire is testing four different fluid systems. The trialling of systems included the successful placement of seven slickwater stages without `screening out' which represents a first for any operator in the Beetaloo Sub-basin. Slickwater stimulation fluids may have significant positive cost reduction benefits in a future development scenario. Empire expects that there will be differing rates of production across the 21 stages because of the fluid systems and perforation strategies tested, which will be determined by 11 gas tracers and 17 water tracers that have been placed across the C-2H horizontal section. Empire is collecting gas and water samples for gas composition and stage contribution analysis. The technical data collected will assist Empire with future completion design to drive optimised well production performance. Empire intends to apply the most productive system(s) when stimulating the Carpentaria-3H well to be drilled later in 2022. Announcement • Aug 05
Empire Energy Group Limited Announces Successful Hydraulic Stimulation of Carpentaria-2H Empire Energy Group Limited updated shareholders on the hydraulic stimulation of Carpentaria-2H, a key milestone in the execution of the 2022 drilling, stimulation and flow testing program, the largest in the company's history. The total of 6,283,200 lbs of proppant was successfully placed without screen out on any stage, representing 97% of the designed proppant volume. The following milestones have been achieved: Executed without any environmental or safety incidents, Stimulated the greatest number of stages in a single well in the Beetaloo to date, Placed 97% of the designed proppant volume into the stimulated stages, The first time that a Beetaloo operator has successfully placed multiple slickwater stages without `screening out' (screen out occurs when sand obstructs the perforations preventing further fracture propagation and sand placement). Slickwater stimulation fluids may have significant positive implications for cost reductions and production in future development scenarios as the slickwater system is the lowest cost system due to lower chemical additive requirement, Stimulated an effective horizontal length of 927m, Achieved technical learning during the stimulation program resulting in increased operational efficiencies, including 2 stages stimulated per day in the final 4 days of the program, which will have cost reduction benefits in future stimulation programs. Empire had originally planned to pump up to 26 stages. The program was however reduced by 5 stages in the vicinity of a previously mapped geological fault as a conservative risk mitigation. Carpentaria-2H Flowback and Gas Flow Testing: Fluid flowback has commenced, with approximately 4% of placed fluids recovered in the first ~24 hours of flowback. Empire has cleaned out the wellbore to maximise flow efficiency and ensure that all stimulated stages are contributing. Stabilised gas flow rates are expected in the coming weeks, although a range of operational factors will affect this timeline. 12 different tracers were placed across the 21 stages, to determine which stages generate the strongest production performance and to optimise completion design for future wells. In the success case this will drive increasing production rates and reduced costs, consistent with the productivity enhancements that occurred across each shale gas basin in the United States of America. EP187 2022 Drilling Program Preparation Advancing: Preparations for the 2022 drilling program continue to advance according to plan. Access track and well pad construction for the Carpentaria-4V well located in the Carpentaria East Area are underway, with indigenous cultural heritage monitors present to ensure that no items of cultural heritage are disturbed. Drilling of water bores for the Carpentaria-4V pad will commence shortly. Empire remains on track to drill and stimulate the Carpentaria-3H well (on the same well pad as Carpentaria-2H) and drill Carpentaria-4V well this year. Announcement • Jul 27
Empire Energy Group Limited Appoints Robin Polson as Chief Financial Officer Empire Energy Group Limited announced the appointment of Robin Polson as Chief Financial Officer. Robin has been deeply involved in the development of the Australian east coast gas industry for over 20 years. He has extensive knowledge of the gas industry in general and in particular the Northern Territory gas market. Robin has strong relationships and experience working with key gas industry financiers, analysts, producers, transport providers, customers and relevant regulatory bodies. He also has substantial experience in building and inspiring high performing teams within effective business and risk frameworks. His prior roles included 15 years as a financial advisory partner at Deloitte focusing on the Australian east coast gas sector, 3 years as Chief Commercial Officer of Central Petroleum Limited (which has production, appraisal and exploration interests in the Northern Territory and on the east coast) and most recently as Associate Partner of Enable Advisory Pty Ltd. advising Empire and other gas sector clients over the last year. Robin's wider experience also includes three years as a director of an investment bank, and almost 30 years with the big four accounting firms (Deloitte and PricewaterhouseCoopers) on three continents, covering audit, corporate finance, M&A and valuation & strategy. Robin has a Bachelor of Commerce degree and a Graduate Diploma in Applied Finance and Investment. He is a member of the Australian Institute of Company Directors. Following the recent successful completion of the capital raising and share purchase plan, he will play a key role as Empire moves forward with the appraisal and de-risking of Empire's substantial Beetaloo Basin resource base. Robin will be integral to building the organisation on the pathway to becoming the first Beetaloo Basin player to commence commercial production. Announcement • Jul 13
Empire Energy Group Limited Commences Fracture Stimulation of Carpentaria-2H Empire Energy Group Limited announced the fracture stimulation of Carpentaria-2H ("C-2H") has commenced. C-2H is located in Empire's 100% owned and operated EP187 Beetaloo Sub-basin acreage. The first of 25 planned stages across the horizontal section has been successfully pumped within the Velkerri B Shale. As previously announced, the stimulation has been designed to utilise several fluid mixes to assess which design results in the best production performance to enhance Beetaloo specific completion designs. The C-2H well production test will also provide an early production type curve and a better understanding of gas composition for development planning. A period of flowback of hydraulic stimulation fluids is anticipated prior to gas production as each of the treated stages progressively cleans up. Empire will then undertake an extended production test for up to 90 days. Empire remains on track to drill the Carpentaria-4V vertical well in the Carpentaria East area of EP187 and drill, hydraulically stimulate and flow test the Carpentaria-3H horizontal well on the same well pad as Carpentaria-2H later this year. Announcement • Jun 21
Empire Energy Group Limited Announces Operational Update Empire Energy Group Limited announced The Beetaloo is a major potential source of increased gas supply. Potentially 100 TCF recoverable, enough to power Australian industry for decades. Hydraulically stimulate Carpentaria-2H which was drilled late last year, the longest horizontal well drilled into the Velkerri Formation to date. The stimulation has been designed to utilise several fluid mixes to assess which design results in the best production performance. It will also provide an early production type curve for development planning, a better understanding of gas composition and enhance Beetaloo specific completion designs. Drill Carpentaria-3H, hydraulically stimulate and flow test. his well will be drilled from the Carpentaria-2H pad location enhancing cost efficiency and will seek to optimise fracture stimulation design and create an early production type curve. Together with Carpentaria-2H, this could be a future production well. Drill Carpentaria-4V. This well will be drilled, vertically only, on the eastern side of the high bisecting the Carpentaria Area in EP187. The well will prove the depth and thickness of the Velkerri shale to the East and will seek to book increased contingent resources, potentially materially increasing present 400 BCF in EP187. will undertake the same test work as on the original Carpentaria-1 well ("C-1") to determine gas concentration and composition. This well, as with C-1, can be developed into a horizontal production well in future production scenarios. It is worth noting that US Appalachian assets are enjoying a considerable lift in revenue contribution. The US Henry Hub gas benchmark has improved from $1.52 /MMbtu at the depths of the COVID shutdowns to presently around US$7.00, having traded as high as US$9.00. The resulting cash flows are being applied to debt reduction, and are enhancing the value of those assets. With a current cash balance of AUD 41.4 million and anticipated future receipts from the Commonwealth grants and R&D tax incentive rebates, Empire is in a sound financial position to develop 100% owned asset base. The Board continues o consider the financing of the future development of this 29 million acre footprint in the Northern Territory, which may include joint venture partnerships or other capital structures. Announcement • Jun 07
Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 27.5 million. Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 27.5 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 125,000,000
Price\Range: AUD 0.22
Discount Per Security: AUD 0.011
Transaction Features: Subsequent Direct Listing Announcement • May 30
Empire Energy Group Limited Announces Company Secretary Changes Empire Energy Group Limited advised that Mr. Andy Phillips has resigned from the role of Company Secretary with effect from 30 May 2022. The Directors thank Mr. Phillips for his service. Empire also announced the appointment of Mr. Ben Johnston as Company Secretary with effect from 30 May 2022. Mr. Johnston is Empire's Vice President Business Development having joined Empire in November 2019. Mr. Johnston is an energy sector specialist having worked across M&A, ECM and debt /project finance transactions while at leading banks including RBC Capital Markets and Commonwealth Bank. He is a chartered accountant having trained with KPMG and holds an MBA from the Australian Graduate School of Management. Announcement • May 19
Empire Energy Group Limited Announces That It Is Completing Preparations for the Hydraulic Stimulation and Extended Production Test of Carpentaria-2H Empire Energy Group Limited announced that it is completing preparations for the hydraulic stimulation and extended production test of Carpentaria-2H. Hydraulic stimulation of C-2H is expected to commence around the end of June 2022. Civils works for hydraulic stimulation have been completed, and mobilisation of equipment is underway. Baseline water sampling of the shallow aquifers as required under NT environmental approvals is also complete. Delivery of some fracture stimulation chemicals had been delayed due to unprecedented global supply chain disruptions but are now en route to Australia and expected to arrive in mid-June. C-2H has a 1,345 metre horizontal section drilled and cased within the Velkerri Formation B Shale, 1,250 metre of which is accessible to hydraulic stimulation. Each hydraulic stimulation stage is expected to be 50 metres long, resulting in a program of up to 25 stages. Empire will utilise several hydraulic stimulation fluid mixes, including slickwater, high viscosity friction reducer, and crosslinked gel to assess which design results in the best production performance. Each fluid type has a dedicated perforation design and pumping strategy. It is likely, given the different hydraulic stimulation designs in C-2H, that there will varying flow rates between fracture stages. The technical data acquired at C-2H will assist Empire with future well completion and hydraulic stimulation design to maximise production in future wells. Basin specific processes refined in the appraisal and development phases in shale plays such as the Beetaloo have been shown to increase well productivity over time. Empire is adopting the best global practices matured in the United States shale revolution to the Beetaloo. Once commenced, hydraulic stimulation is expected to take 15 to 20 days. Flow back of C-2H will commence immediately following hydraulic stimulation. Stimulation water is expected to dominate initial flow back volumes as C-2H cleans up prior to commencement of the main phase of the EPT. This initial flow back period is anticipated to last approximately one month. Empire has regulatory approval to undertake an EPT for up to 90 days. The hydraulic stimulation and production testing at C-2H will seek to improve stimulation fluid selection, perforation, and pumping strategy, and help refine the horizontal target window. It will also provide an early production type curve for development planning, a better understanding of gas composition and enhance Beetaloo specific completion designs. The work at C-2H aligns with Empire's rapid commercialisation strategy to deliver gas volumes into existing infrastructure. Beetaloo Cooperative Drilling Program Empire has received $1.82 million in cash (excluding GST), under the Australian Government's Beetaloo Cooperative Drilling Program. The funds received represent reimbursement of past capital expenditures and will be applied to the forthcoming C-2H stimulation and EPT. Further cash receipts are expected to be received as Empire's work program activities are progressed under its grant agreements with the Australian Government, including for some work that has already been completed. US Operations Update Empire's US gas production assets continue to benefit from higher gas prices in the United States. The current NYMEX Henry Hub spot price is >USD 8.30 /mcf. The higher gas price environment has allowed Empire to layer additional hedging via USD 7.50 /MMBtu fixed price swaps for 25,000 /MMBtu per month for the period 1 June 2022 to 28 February 2023. Empire continues to maintain exposure to spot gas prices through put options which provide upside gas price exposure while ensuring downside price protection and unhedged production volumes. Empire's US net gas production averages 140,000 mcf per month over the course of the year. The all-in sustaining break-even cash cost of Empire's US assets including corporate overheads and distribution royalties, differentials to NYMEX Henry Hub benchmark and deferred hedging premiums is typically USD 3.00 – USD 3.50 /mcf. In its Short-term Energy Outlook released 10 May 2022, the US Energy Information Administration forecast Henry Hub to average USD 8.59 /MMBtu for H2 2022. The EIA expects gas prices to be supported by lower-than-average gas in storage levels over the northern summer and strong LNG export demand. Reported Earnings • Apr 01
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: AU$0.024 loss per share. Net loss: AU$11.0m (loss widened 44% from FY 2020). Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 10% compared to a 28% growth forecast for the oil industry in Australia. Announcement • Feb 16
Empire Energy Group Limited Announces an Update to Its Beetaloo Sub-Basin Contingent and Prospective Resources and US Gas Production Asset Reserves Empire Energy Group Limited announced an update to its Beetaloo Sub-basin Contingent and Prospective Resources and US gas production asset reserves. The revised estimate of the Contingent Resources for EP187 incorporated the technical results from the Carpentaria-2H ("C-2H") well which was drilled in Fourth Quarter 2021, the Carpentaria-1 ("C-1") vertical fracture stimulation and flow test which was carried out in Second Quarter 2021, and the Charlotte 2D Seismic Survey ("Charlotte Seismic Survey") which was acquired in Fourth Quarter 2021. C-2H comprised a vertical and horizontal well section. The C-2H vertical section intersected the Velkerri A, Intra A/B, B and C shales with near identical rock and gas characteristics as those intersected at C-1, albeit ~240 metres deeper. C-1 was successfully fracture stimulated and production tested in Third Quarter 2021 and produced gas to surface from all four of the Velkerri shale zones. Empire intends to fracture stimulate and flow test C-2H in Second Quarter 2022 with all approvals in place and operational planning well advanced. The revised estimate of the Prospective Resources incorporates the results of the Charlotte Seismic Survey and the C-2H drilling results. The Charlotte Seismic Survey provided additional coverage over the prospective Carpentaria East and Carpentaria South areas, immediately adjacent to the Carpentaria area where Empire has now drilled two successful wells. Announcement • Dec 19
Empire Energy Group Limited Provides Beetaloo Operations Update Empire Energy Group Limited announced that it has successfully drilled, cased, and suspended the C-2H well in Empire's 100% owned and operated EP187, located in the Beetaloo Sub-basin, Northern Territory. C-2H is now awaiting fracture stimulation and production testing to start in second quarter of 2022. The Carpentaria-2 vertical hole intersected liquids-rich shale gas intervals, with gas compositions nearly identical to Carpentaria-1, across the four middle Velkerri pay zones (Velkerri A, B, Intra A/B and C), representing a net pay thickness of 192 metres. The Carpentaria-2 vertical hole has proven the continuous extension of the Velkerri shales from the Carpentaria-1 well located 11 kilometres to the south. The consistency of shale thickness between the two wells, coupled with the available 2D seismic grid confirms the lateral extension and regularity of shale targets throughout the mapped EP187 resource. The C-2H horizontal section was drilled in the Velkerri B Shale. This target zone was selected using Carpentaria-1 production testing results, as well as petrophysical analysis of the C-2H vertical hole undertaken by Houston-based W.D. Von Gonten Laboratories ("WDVG") using the advanced wireline log data acquired by Schlumberger. C-2H reached 3,150 metres total measured depth (TD) on 13 December 2021. C-2H was drilled to a total measured depth of 3,150 metres with the horizontal section length being 1,345 metres and wholly placed within the Velkerri B Shale target window. This is the longest horizontal section drilled to date in the Velkerri shale sequence. Strong gas shows throughout the drilling of the horizontal section were recorded; and the core samples from the vertical hole showed encouraging signs of hydrocarbon bubbling representing live gas. Empire is demonstrating improved operating efficiency as enhance knowledge and continue to refine drilling techniques to suit the unique geological environment of the Beetaloo Sub-basin. Further operational improvements have been identified for future drilling campaigns. The Silver City Rig 40 was released on 16 December 2021, 39 days after spud and the horizontal section itself took only five days to drill, validating strong time and cost performance compared to all other wells in the Beetaloo Sub-basin. C-2H was completed on time and on budget. The total cost of the C-2H drilling campaign including well pad construction, water monitoring bores, formation evaluation, drilling, casing, cementing, and suspending the well in preparation for fracture stimulation is expected to be approximately $11.5 million. This compares favourably with vertical-only Carpentaria-1 drilled in 2020 which cost of $11.3 million and with other wells drilled in the Beetaloo Sub-basin to date. Empire expects to further reduce costs in future wells as drilling techniques are refined. Petrophysics from the Carpentaria-2 vertical hole along with revised mapping from the fourth quarter of 2021 Charlotte 2D Seismic Survey and 2019 Broadmere Survey will be provided to Netherland, Sewell & Associates Inc. ("NSAI") to update Empire's EP187 Contingent and Prospective Resources report. Empire expects to release the updated NSAI certified Contingent and Prospective Resources report during first quarter of 2022. The Empire technical team and inGauge Energy Pty Ltd. operating team have commencedplanning for the fracture stimulation and extended production testing of C2-H scheduled to start in second quarter of 2022 after end of the wet season. WDVG core analysis will be incorporated into Empire's planning. Environment, Social & Governance (ESG) Update: Empire has used second half of 2021 to deepen understanding of the ESG impacts most material to business. Empire has been assisted by a third-party ESG specialist firm and relied on industry best-practice from the Sustainability Accounting Standards Board's (SASB) Oil and Gas Exploration and Production ESG standard.The result of these efforts is a detailed ESG workplan to deliver a ESG framework by mid-2022 that includes performance metrics, targets, and an action plan. This ESG framework will have a specific focus on operational and value chain greenhouse gas emissions, as well as engagement with local communities and Traditional Owner stakeholders where operate. Announcement • Sep 27
Empire Energy Group Limited Provides Beetaloo Operations Update Empire Energy Group Limited will reopen the well and restart Extended Production Test ("EPT") operations on or around 28th September 2021. The EPT operations are expected to further enhance Empire's understanding of the relative productivity of each of the Velkerri Formation shale targets (A, B, Intra A/B and C) and the gas composition of produced hydrocarbons. The data collected will inform technical decisions and the optimum placement of the Carpentaria-2H horizontal well, and future horizontal appraisal drilling across EP187. Empire also intends to enhance the artificial lift system at Carpentaria-1 to better determine the productivity of the Velkerri Formation shales. The Carpentaria-2H well pad is located 4.5 kilometres to the north of the Carpentaria Highway and McArthur River Pipeline on an existing 2D seismic line approximately 11km North of Carpentaria-1. The target Velkerri Formation shales are shown by mapping to be more than 200 metres deeper at the Carpentaria-2 location than the same sequence in Carpentaria-1. Civil works for the Carpentaria-2 well pad and access roads are advancing well. Water bore drilling has been completed. The drilling of the Carpentaria-2H well is expected to commence in late October once final Northern Territory approvals are received. The Carpentaria-2 vertical hole section will be drilled through the Velkerri Formation shale sequence followed by an extensive formation evaluation program. The vertical hole section will be immediately plugged back and the horizontal Carpentaria-2H hole section drilled into the Velkerri Formation shale to be high- graded by the pilot hole and Carpentaria-1 formation evaluation and production testing. Hydraulic fracture stimulation and EPT of the Carpentaria-2H horizontal well, which will be designed to test the commercial production potential of the well, is planned to start early in the 2022 dry season once technical data has been collected and analysed. Announcement • Aug 16
Empire Energy Group Limited (ASX:EEG) completed the acquisition of 82.5% stake in Beetaloo Sub-basin Portfolio from Pangaea (NT) Unit Trust. Empire Energy Group Limited (ASX:EEG) signed a binding sale and purchase agreement to acquire 82.5% stake in Beetaloo Sub-basin Portfolio from Pangaea (NT) Unit Trust for AUD 54.7 million on April 14, 2021. Empire Energy Group Limited will issue AUD 5 million cash payable and 140 million Empire shares will be issued to Pangaea upon completion of the transaction. Pangaea will also be issued 8 million unlisted Empire options with an exercise price of AUD 0.70 per share. As a result, Pangaea will end up owning 30% of Empire. Pangaea has entered into voluntary escrow arrangements. 55 million shares shall be escrowed for no less than 12 months and 75 million shares for no less than 24 months. Under the joint venture operating agreement between Pangaea and EMG Fund II Management, L.P, EMG and Pangaea have certain “drag and tag” rights. Empire will engage with EMG in relation to their position. Should EMG join the transaction, Empire will acquire that 17.5% interest as well. If Pangaea’s joint venture partner, EMG tags or otherwise joins the deal, a further AUD 1.06 million cash, 29.7 million Empire shares and 1.7 million Empire AUD 0.70 options may be payable to EMG. Empire Energy Group Limited raised AUD 30 million through two tranches share purchase plan that will be used to partially fund this transaction. Paul Fudge (with Jacqui Clarke as alternate) will join the Empire Board on completion. The acquisition is subject to Empire shareholder and Northern Territory Government approvals. As of July 6, 2021, Empire Energy has called a general meeting on August 3, 2021, for changing the terms of the transaction. Completion is expected to occur by the end of June 2021.
Morgan Stanley (NYSE:MS) is acting as financial advisor and Herbert Smith Freehills LLP is acting as legal advisor to Pangaea (NT) Unit Trust. Amicaa Advisors Pty Ltd is acting as financial advisor and is acting as legal advisor to Empire Energy Group Limited (ASX:EEG).
Empire Energy Group Limited (ASX:EEG) completed the acquisition of 82.5% stake in Beetaloo Sub-basin Portfolio from Pangaea (NT) Unit Trust on August 16, 2021. Announcement • Jun 17
Empire Energy Group Limited Provide an Update on the Continuing Positive Progress at the Carpentaria-1 Well in EP187 Empire Energy Group Limited to provide an update to shareholders on the continuing positive progress at the Carpentaria-1 well in EP187. The hydraulic fracture stimulation spread which completed the 4-stage program at Carpentaria-1 has been released and a coiled tubing unit is finishing the initial unload of fracture stimulation fluids from the well. The Carpentaria-1 well gas contribution has steadily increased through the initial flow-back post fracture stimulation. Empire is preparing to run the production test completion into the well over the next few days in preparation for further well analysis and extended production rate testing. Drone footage of gas flaring at the Carpentaria-1 location can be found at the Empire Energy Group Limited LinkedIn page. Announcement • Jun 01
Empire Energy Group Limited Announces the Commencement of the Fracture Stimulation, Flowback and Extended Production Testing Program at Carpentaria-1 Empire Energy Group Limited announced the commencement of the fracture stimulation, flowback and extended production testing program at Carpentaria-1. Carpentaria-1 is in Empire's wholly-owned and operated EP187, in the Beetaloo Sub-basin, Northern Territory. Four fracture stimulation stages will be undertaken from the vertical wellbore, targeting the A Shale, Intra A /B Shale, B Shale and C Shale of the Middle Velkerri Formation. The fracture stimulation program will test each of these four thick and productive target zones across the`stacked' Velkerri shale formation units. Site preparation and civil works are complete. Equipment now onsite includes proppant, surface ponds for water storage, hydraulic stimulation pump trucks, mixing trucks, a coiled tubing unit and a cased hole wireline unit. Hydraulic stimulation operations are expected to take one week, followed by approximately one month of fluid flow back before hydrocarbon flows are expected to commence. Major Estimate Revision • May 21
Consensus revenue estimates increase to AU$6.38m The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from AU$5.76m to AU$6.38m. Forecast losses expected to reduce from -AU$0.014 to -AU$0.0083 per share. Oil and Gas industry in Australia expected to see average net income growth of 28% next year. Consensus price target of AU$1.14 unchanged from last update. Share price fell 8.8% to AU$0.31 over the past week. Announcement • May 05
Empire Energy Group's Ordinary Shares to Be Deleted from Other OTC Empire Energy Group Limited's Ordinary Shares will be deleted from other OTC effective from May 4, 2021 due to Inactive Security. Announcement • Apr 26
Empire Energy Group Limited (ASX:EEG) agreed to acquire 17.5% stake in Beetaloo Sub-basin Portfolio from EMG Fund II Management, L.P. Empire Energy Group Limited (ASX:EEG) agreed to acquire 17.5% stake in Beetaloo Sub-basin Portfolio from EMG Fund II Management, L.P. for AUD 11.8 million on April 26, 2021. EMG Northern Territory Holdings Pty Limited, a member of The Energy & Minerals Group (“EMG”), has delivered a Notice of Exercise of Tag Along Right to Pangaea (NT) Pty Limited (“Pangaea”) pursuant to which it has exercised its right to sell its 17.5% interest in EP167, EP168, EP169, EP198 and EP305 to Imperial Oil & Gas A Pty Limited, a wholly owned subsidiary of Empire, on the same pro rata terms as the sale of Pangaea’s interests in the Tenements. The Tag Right was flagged to Empire shareholders in the announcement dated 14 April 2021. Empire Energy Group Limited will issue AUD 1.06 million cash payable, 29.7 million Empire shares and 1.7 million Empire AUD 0.70 options will be issued to Pangaea upon completion of the transaction. Empire share will be escrowed with 11.7 million shares shall be escrowed for no less than 12 months and 13.3 million shares for no less than 24 months. The acquisition is subject to Empire shareholder approval. Reported Earnings • Apr 01
Full year 2020 earnings released: AU$0.027 loss per share (vs AU$0.073 loss in FY 2019) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: AU$6.46m (down 16% from FY 2019). Net loss: AU$7.68m (loss narrowed 55% from FY 2019). Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Executive Departure • Mar 12
Non-Executive Director has left the company On the 11th of March, John Gerahty's tenure as Non-Executive Director ended after 2.3 years in the role. As of December 2020, John personally held 17.81m shares (AU$6.3m worth at the time). A total of 2 executives have left over the last 12 months. Announcement • Mar 11
Empire Energy Group Limited Announces Board Changes Empire Energy Group Limited announced the appointment of Mr. Louis Rozman to the Board of Directors. Mr. John Gerahty has retired from the Board of Directors effective today. Mr. Rozman is a mining engineer and executive with 40 years' experience in operating and constructing projects in Africa, Australia and Papua New Guinea. Mr. Rozman was the Chief Operating Officer of AurionGold Limited and was instrumental in the growth and development of its predecessor, Delta Gold Limited. He was the Chief Executive Officer of CH4 Gas Limited, during its pioneering coal seam gas development in Queensland. Announcement • Feb 22
Empire Energy Group Limited Announces Material Beetaloo Resource Upgrade Empire Energy Group Limited announced that Netherland, Sewell & Associates Inc. has prepared an updated independent resource report for Empire's 100% owned and operated EP187 tenement located in the Beetaloo Sub-basin, Northern Territory, utilising the technical results of the Carpentaria-1 drilling program. The independent resource assessment for Empire's 100% owned and operated EP187 permit was prepared by NSAI. Following completion of the evaluation program of the Carpentaria-1 well core and wireline data by W. D. Von Gonten & Co. in Houston, Texas, NSAI has incorporated the analyses and interpretations into its independent resource assessment for Empire's EP187 permit. The reservoir properties and shale pay thickness exceeded pre-drill expectations for Carpentaria-1, which has driven material increases in assessed gas and now condensate resources. Empire's shales in the target Velkerri Formation are both thicker and contain more liquid hydrocarbons than expected prior to drilling. Is New 90 Day High Low • Feb 15
New 90-day low: AU$0.33 The company is down 11% from its price of AU$0.37 on 17 November 2020. The Australian market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Oil and Gas industry, which is up 11% over the same period. Announcement • Feb 02
Empire Energy Group Limited Announces Carpentaria-1 Core Results and Operations Update Empire Energy Group Limited updated shareholders on the results of its formation evaluation program incorporating lab analysis recently received from W. D. Von Gonten & Co ("WDVG"), and to outline the implications for resource estimates and add details for Empire's forward work programs. WDVG has now completed a series of laboratory tests on the core samples across the Middle Velkerri Shale sequences taken from Empire's recently drilled Carpentaria-1 well. The results confirm that the Middle Velkerri Shale targets in Empire's EP187 have world class-rock characteristics and compare favourably to the premier US shale basins. Porosity, hydrocarbon saturation, non-clay component and total organic carbon all compare favourably, and the thermal maturity levels estimated demonstrate strong potential for liquids-rich gas production, particularly in the shallower zones. The target formation thicknesses measured in Carpentaria-1 were large compared to the major US shale plays and comparable to the Velkerri target shale thickness in the Tanumbirini-1 well drilled by Santos in the neighbouring tenement. The analyses focused on the Middle Velkerri A, Intra A/B, B and C shales, the zones Empire's technical team assess as having the greatest potential for commercial gas and liquids flows. A wider array of tests was done than initially anticipated, to allow Empire's technical team to better understand the gas and liquid hydrocarbon content of the core samples and the corresponding rock properties. Empire's technical team continues to analyse these results and incorporate them into its developing geotechnical model of the Middle Velkerri Shale within EP187. Updated Resource Assessment: The core results are being collated with the downhole data gathered in the logging of
Carpentaria-1 to feed into resource estimates for EP187. Netherland, Sewell & Associates Inc. ("NSAI") has been engaged to generate an updated independent prospective resource estimate for EP187 incorporating all of these results. Empire expects to update shareholders on the results of NSAI's assessment later in First Quarter 2021. 2021 Work Program: The NT regulatory approval process for the hydraulic stimulation and flow testing of Carpentaria-1 across numerous target zones of the Middle Velkerri Shale is progressing well, with final approvals expected later in First Quarter 2021. Empire has also started the tendering process for the program and discussions are underway with several services companies. Shareholders will be advised as preferred contractors are selected. Detailed technical analysis using the full results of the Carpentaria-1 formation evaluation program to assess the optimal fracture stimulation and flow testing design is underway, and that program will test Empire's thesis that the Middle Velkerri Shale in EP187 can produce commercial hydrocarbons. Empire presently anticipates commencing the fracture stimulation and flow testing program in Second Quarter 2021. The program will be funded from existing cash at bank. Announcement • Nov 16
Empire Energy Group Limited Announces Company Secretary Changes Empire Energy Group Limited announced that Mr. Julian Rockett has resigned from he role of Company Secretary with effect from 13th November 2020. Empire also announced the appointment of Mr. Andrew Phillips as Company Secretary with effect from 13th November 2020. He is currently Executive Director, CFO and Company Secretary of Lithium Power International Limited and holds independent directorships for Southern Cross Exploration NL and Donaco International Limited. Announcement • Oct 13
Empire Energy Group Limited Provides Carpentaria-1 Drilling Update Empire Energy Group Limited provide shareholders with an operational update on its 100% owned and operated Carpentaria-1 exploration well in EP187, located on the eastern side of the Northern Territory's Beetaloo Sub-basin. The Velkerri Shale was intersected from 833m MD to 1,831m MD (top of the Upper Velkerri Shale to top of the Bessie Creek Sandstone). This was intersected at a shallower depth than pre-drill prognosis. Such a reinterpretation of stratigraphy is not uncommon in frontier exploration plays with sparse 2D seismic coverage. The nearest control well is more than 60km away. Background mudlog gas chromatograph readings were elevated across the Velkerri Formation with peak mudlog gas readings over the Middle Velkerri C1 (from 1,105m MD to 1,160m MD), Middle Velkerri B1 (from 1,320m MD to 1,372m MD) and Middle Velkerri A1 (from 1,490m MD to 1,544m MD). Strong mud gas readings were also observed in the interval between the Middle Velkerri B and the Middle Velkerri A Shales. The Velkerri Shale intersected in Carpentaria-1 has comparable thickness to other wells in the Beetaloo Basin including Santos' Tanumbirini-1 vertical well where equivalent elevated gas shows were recorded. Tanumbirini-1 was flow tested across these intervals earlier this year following a vertical fracture stimulation with peak flow rates of over 1.2 mmcf /day which. Santos' preliminary gas composition analysis reported >90% methane and 3% ethane2, indicating relatively dry gas in Santos' work program areas compared to Empire's mudlog recordings indicating liquids-rich gas in Carpentaria-1. Carpentaria-1 is located within a 40,000-acre (160 km2) fault block that Empire has defined as its Phase 1 Work Program Area. Preliminary post-drill interpretation of Empire's 2019 seismic data which can now be confidently tied to Carpentaria-1 well control demonstrates that Carpentaria-1 is located shallower within the fault block, which dips and deepens to the North West of Carpentaria-1. Given the relatively gentle dip, Empire anticipates that future drilling within the Phase 1 Work Program Area is likely to also encounter liquids rich gas across the Velkerri Formation target shales. The Kyalla shale interval was a shallow secondary target for Carpentaria-1. Empire's pre-drill subsurface mapping concluded it was restricted to a limited area in the west of EP 187. Drilling has now confirmed that the Kyalla shale is absent at the Carpentaria-1 location. Empire's pre-drill petroleum volumetrics estimates suggested that, if present at Carpentaria-1, the Kyalla shale would host a modest incremental prospective resource compared with the primary Velkerri shale target. This view was supported by Netherland, Sewell and Associates Inc. (`NSAI') in its prospective resource report announced by Empire on 18th May 2020. NSAI attributed only 0.5% of total best estimate prospective resource across Empire's Northern Territory properties to the Kyalla Shale. Is New 90 Day High Low • Oct 12
New 90-day high: AU$0.41 The company is up 52% from its price of AU$0.27 on 14 July 2020. The Australian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Oil and Gas industry, which is down 7.0% over the same period. Announcement • Sep 24
Empire Energy Group Limited Announces Commence Drilling the Carpentaria-1 Well in Empire's 100% Owned Northern Territory Permit Ep187 Empire Energy Group Limited announced that it will commence drilling the Carpentaria-1 well in Empire's 100% owned Northern Territory permit EP187. The well will be drilled to a planned depth of 2,900 metres to allow Empire's technical team to fully evaluate the two unconventional shale targets, the Velkerri and Kyalla Shales. As previously announced, Netherland, Sewell and Associates Inc. has independently assessed these targets to have a best estimate prospective resource of 2.4 trillion cubic feet of gas equivalent in Empire's EP187 permit. The drilling and formation evaluation campaign is expected to take approximately 40 days. The well design allows for suspension and future re-entry, fracture stimulation and flow testing, which Empire presently expects to commence in Second Quarter 2021. Announcement • Aug 26
Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 10 million. Empire Energy Group Limited has completed a Follow-on Equity Offering in the amount of AUD 10 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 33,333,334
Price\Range: AUD 0.3
Discount Per Security: AUD 0.015
Transaction Features: Subsequent Direct Listing