Empire Energy Group (ASX:EEG) has announced that the Northern Territory Government has approved its environmental management plan (EMP) for the Carpentaria pilot project in the Beetaloo Basin. This approval covers key components of the project, including the drilling of up to nine new wells, the installation of the Carpentaria gas plant and the connection to the McArthur River pipeline for gas export.
Empire Energy is an oil and gas exploration and production company focused on unconventional gas resources in the Beetaloo and McArthur basins in the Northern Territory. “Unconventional” refers to natural gas found in rock formations such as shale or compacted sandstone, which require advanced extraction techniques, such as hydraulic fracturing, to release. Empire aims to harness these resources to help meet Australia’s energy demands, while supporting the transition to cleaner fuel sources. The East Coast gas market could experience gas supply shortages as early as 2027.
The EMP approval allows Empire to move forward with its pilot production plans, initially focusing on drilling the Carpentaria-5H well. Empire reported that the Ensign #965 rig is now on site and that drilling will begin soon.
Empire CEO Alex Underwood highlighted the expected benefits of the project, highlighting its potential to deliver gas to the Northern Territory, create jobs and support energy affordability across the region.
The final regulatory phase of the project involves approval to sell gas under the Northern Territory’s beneficial use of test gas provisions. Stakeholder consultations, including discussions with traditional landowners, are already underway.
On the back of this news, Empire Energy shares jumped 13.51% to 21 cents.