Empire Energy Group Limited: Policy; Funding & Drill Commencement Wins Propel Forward

Empire Energy Group Limited (ASX:EEG) is a junior oil and gas producer and explorer with onshore Northern Territory (NT) and US oil & gas assets. EEG holds the largest acreage position (>14.5m acres) in the highly prospective, potentially global-scale NT McArthur-Beetaloo basins. The province is fast developing as a gas-rich (and potentially liquids-rich) strategic bolster for east coast Australia’s future energy needs and Darwin’s expanding LNG export terminals, amid strong policy support from both Territory and Federal governments. The Beetaloo Sub- basin alone is considered to contain recoverable unconventional shale dry gas volumes of over 100 Tcf, with liquids upside. EEG also owns conventional gas/oil assets in the US Appalachia, 80%-hedged with 2020 floor prices at US$2.50/mcf. Recent 2D seismic results enabled a 22% upgrade of EEG’s NT P50 prospective resources to 13.5 Tcf gas. Crystallising EEG’s longer-term potential rests on successful drilling and production testing. EEG has begun a ~40-day vertical drill program to ~2900m to test the Velkerri/Kyalla Shales. We believe this $10m program can comfortably be funded from recently-bolstered cash reserves. Formation evaluation data updates are expected by November & will inform on 2021’s fracture stimulation program.