Empire Energy
Primary ticker: ASX:EEG
Stage of development: Exploration, Development
Primary minerals: Gas
Project to promote: Carpentaria Pilot Project, Beetaloo Sub-Basin, Northern Territory
Project location: Australia
Website: www.empireenergygroup.net
Empire Energy Group Limited (ASX:EEG) is a Sydney based Australian oil and gas company holding 100%-owned and operated assets with unconventional targets in the Northern Territory Beetaloo Sub-basin and central trough of the McArthur Basin. >42 TCF 2U Prospective Resource. 1.6TCF 2C Contingent Resource. >1 million acres in two contiguous acreage positions. World class shale characteristics.
Cash: AUD $49M
Debt: AUD $6.2M
Major shareholders:
Pangea (NT) Pty Ltd- 14.48%
Sheffield Holdings LLP- 8.50%
Elphinstone Holdings Pty Ltd- 7.73%
Liberty Oilfield Services LLC- 4.73%
Macquarie Bank – 3%
Management Ownership – 2%
Financials
Management Profile
Mr Alex Underwood – Managing Director
Prior to joining Empire in 2018 Alex was Associate Director Energy Markets Division of Macquarie Bank Limited for 10 years and a Financial Analyst BHP Billiton Petroleum, with experience in the upstream oil and gas sector and identification of value creation opportunities for upstream oil and gas development/production assets and a deep understanding as an institutional investor of the key drivers of shale gas value generation.
What is your rationale for taking part in 121 Mining Investment?
We have just completed a capital round introducing new US based investors to our register. We anticipate 2024/5 to be a transformational time for Empire as we move our pilot project into production. We are attending 121 to bring our project to the attention of experienced US shale gas investors.
What recent news would you like to highlight to investors attending?
– 29th March 2023- Material Increase in Carpentaria-2H IP30
– 29th May 2023- LNG Scale Discovered Resource Delineated in EP187
– 4th December 2023- Empire Acquires Gas Processing Facility
– 17th April 2024- Empire Completes A$46.8M Capital Raise corner-stoned by Bryan Sheffield and Liberty Energy Inc.
– 26th July 2024- Empire Energy signs 10-year binding Gas Sales Agreement with the Northern Territory Government to supply 25 TJ per day from Carpentaria Pilot Project
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
– Reach FID on pilot project
– Execute drill contract for Carpentaria 5-H.
– Commence field activities
6 Months:
– Drill, stimulate and flow test C5-H, our first 2 mile horizontal pilot development well
– Commence surface facility construction
12 Months:
– Commence production and sales at the Carpentaria Pilot Project
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
We are focused on reaching a Final Investment decision in the coming months which would entail regulatory approvals and execution of our first gas sales agreement
What do you think makes your company such a compelling investment?
The lived experience of the US shale industry is that enormous quantities of reserves can be booked with limited development expenditure. Australia and the Asian region are facing dramatic supply shortfalls so market prices are very strong. Empire Energy will soon drill its first pilot development well which is fully funded. Gas produced from this well will be sold into the under-supplied local market allowing the company to reinvest cash flows into further development activities.
What are the top 3 key investor takeaways?
– Enormous low CO2 gas resource
– Huge drilling runway into Australian domestic market and broader Asian LNG market
– Fully funded for next phase with very strong Government support