Sydney, Australia, Aug 8, 2023 - (ABN Newswire) - Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF) is pleased to announce it has executed an initial agreement with APT Management Services Pty Limited, a wholly owned subsidiary of APA Group, for the establishment of midstream gas infrastructure early works and partnering agreements where, subject to entering long-form agreements and approvals by each party, APA will spend up to $5 million under the Early Works Agreement on Engineering and Design Concepts for midstream gas infrastructure facilities associated with Empire's Carpentaria Pilot Project ("Pilot Project") for the potential construction of midstream infrastructure to transport up to 25 terajoules (TJ) per day to market and Empire provides APA exclusive rights to become its midstream gas infrastructure partner under the Partnering Agreement.
The long-form agreements to be entered into would support the potential development of Empire's Pilot Project and staged development of multi-user, open-access infrastructure for the export of gas from the Beetaloo Sub-basin to Australian east coast markets subject to approvals by each party.
Comments from Managing Director Alex Underwood:
"APA, Australia's leading energy infrastructure business, has demonstrated its desire to connect the Beetaloo Basin to customers both domestic and international, underwriting Australia's energy security. This agreement is a result of the substantial progress in resource development Empire has achieved since the MOU, announced in October 2021."
"APA potentially funding the midstream gas infrastructure facilities for Empire's Carpentaria Pilot Project, reduces the capital requirement to Empire, enhancing project economics."
Empire is planning a staged development of midstream gas infrastructure with the following projects:
- Stage 1 (Pilot Project): early works activity for a project to facilitate the construction of gas gathering, gas processing, compression and associated midstream infrastructure to facilitate the Pilot Project targeted sales gas production rate of up to 25 TJ per day utilising the existing McArthur River Pipeline to Daly Waters and the McArthur River Mine.
Empire is targeting a final investment decision for the Pilot Project later this year for targeted first gas sales in H1 2025. The Early Works Agreement would envisage APA Group funding the Pilot Project midstream gas infrastructure facilities up to $5 million with further funding to potentially be provided for under another long-form agreement. This would materially reduce the capital requirement for Empire to commence commercial production; and
- Stage 2 & further Stages (Other Projects): early works activity for a project to facilitate the construction of a new Beetaloo Sub-basin pipeline to Australian East Coast markets.
The leading concept for the new pipeline will connect the Beetaloo to APA's existing Carpentaria Gas Pipeline ("CGP") between Mount Isa and Ballera (Queensland) to facilitate transportation of material volumes of gas from the Beetaloo Sub-basin to Australian East Coast markets. This solution has the capability of being expanded to meet growing market demand on the East Coast (in excess of 500 TJ/d). The initial agreement envisages APA Group funding the new pipeline subject to entering long-form agreements.
The Partnering Agreement will cover the broader and longer-term arrangements between the Parties beyond the Pilot Project subject to approval by each party.
The Partnering Agreement would also envisage Empire granting APA exclusive rights to develop and execute Empire's midstream gas infrastructure projects in exchange for the opportunity for Empire to become a foundation customer in any multi-user pipeline to export gas from Empire's Beetaloo Sub-basin assets.
About APA Group
APA is a leading Australian Securities Exchange (ASX) listed energy infrastructure business. APA own and/or manage and operate a diverse, $22 billion portfolio of gas, electricity, solar and wind assets. APA delivers approximately half of Australia's gas usage.
About Empire Energy Group Ltd:
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) holds over 14.5 million acres of highly prospective exploration tenements in the McArthur and Beetaloo Basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds 80% has very considerable conventional and unconventional hydrocarbon potential. The Beetaloo sub-Basin, in which Empire holds a substantial position, has independently assessed world class hydrocarbon volumes in place with a major ramp up in industry activity underway to appraise substantial discoveries already made by major Australian oil and gas operators.
Empire Energy is an experienced conventional oil and gas producer with operations in the Appalachia region (New York and Pennsylvania). Empire has been successfully developing and producing oil and gas since 2006.
Contact:
Empire Energy Group Ltd
E: info@empiregp.net
T: +61-2-9251-1846
F: +61-2-9251-0244
WWW: www.empireenergygroup.net
Source:
Empire Energy Group Ltd
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