Empire JV granted Red Gully production licences

THE ROADHOUSE BOWSER: Empire Oil & Gas (ASX: EGO), operator of the EP 389 Joint Venture (EGO 76.39%, ERM Power (ASX: EPW) 23.61%), announced the JV has been granted Petroleum Production Licences L 18 & L 19 by the Western Australia Department of Minerals and Petroleum.

The licences are over two exploration blocks, which cover approximately 18 square kilometres incorporating the Red Gully-1 and Gingin West-1 producing fields and the Red Gully Processing Facility.

The Red Gully-1 and Gingin West-1 wells have been producing gas and condensate on an Extended Production Test (EPT) through the Red Gully Processing Facility since first gas was produced in June 2013 and commissioning of the facility occurred in September 2013.

The Red Gully-1 B Sands were perforated in late June 2014 and have since been tested via production through the facility with average daily sales for the September 2014 Quarter of 7.7 terrajoules (TJ) and approximately 360 barrels of condensate per day.
 
“This marks a major milestone in the transformation of Empire from an exploration company to a significant onshore Perth Basin gas and condensate producer.” Empire Oil & Gas chief executive Ken Aitken said in the company’s announcement to the Australian Securities Exchange.

“The JV plans to use the Red Gully facility as a ‘production hub’ for future exploration discoveries in the production licences and greater EP
389 area.

“These licences give the JV further security of tenure over what is a prime petroleum production asset with extensive exploration potential and efficient access to a growing market via the existing infrastructure.”

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Website: www.empireoil.com.au