Empire bolsters Beetaloo NT gas ambitions with $28M raise

Sydney-based Empire Energy has secured a hefty $28 million war chest to propel its trailblazing Carpentaria gas pilot project in the Northern Territory’s colossal Beetaloo Basin, as it manoeuvres to become Australia’s next big onshore gas player.

The company announced today it has successfully completed a $28M placement to a mix of new and existing institutional and sophisticated investors, with board members also hitting their kick for a notable $250,000 commitment.

The capital injection will turbocharge the hydraulic stimulation and flow testing of Empire’s record-breaking Carpentaria-5H well, the longest horizontal well in the Beetaloo Sub-basin at a whopping 3310 metres. 

The well was drilled and cased late last year and is primed for a massive 60-to-70-stage stimulation program set to kick off next month.

Empire says it will also roll out a share purchase plan (SPP) to raise up to a further $3M, to allow existing shareholders the chance to join the action on the same terms as the bigger players. 

To sweeten the deal, investors will receive one unlisted option for every two shares subscribed for in the placement, with the options exercisable at 50 per cent higher than the raising price of 16c per share. 

Empire Energy Group managing director Alex Underwood said: “The upcoming fracture stimulation is anticipated to have 60-70 stages, with greater horsepower, proppant intensity and water intensity than previous wells stimulated by Empire. Post stimulation and soaking, flow-testing will commence to assess production rates over 30 days with results anticipated in Q3 2025. C-5H will then be shut-in and tied-in to the Carpentaria Gas Plant for production and sales following regulatory approvals for gas sales.”

The company’s Beetaloo Basin projects sprawl across a massive 33,000 square kilometres of the basin, with some estimates pegging the broader basin gas endowment at a biblical 500 trillion cubic feet, nearly 20 times the size of the massive operations of WA’s North West Shelf. 

Empire’s Carpentaria project is poised to be the first ever company to tap this hydrocarbon goldmine commercially, with first gas sales targeted for next year. 

The funds will not only bankroll Carpentaria-5H’s stimulation and flow testing but also cover overheads and preparatory works for the Carpentaria gas plant. 

Once the well has been stimulated it will be shut in and tied into the Carpentaria gas plant for production pending the final regulatory nod for gas sales under the Northern Territory’s “Beneficial Use of Test Gas” rules. 

The company has its eyes on the production finish line now, strengthened by its existing $25.7M in cash and $28.8M in undrawn Macquarie Bank facilities. 

Empire says it plans to rebrand as Beetaloo Energy Australia Limited, with the name change set to embody the name of what many believe will be the next big gas frontier in Australia. Empire will initially draw gas frm the basin to supply the Northern Territory government with as much as 100 terajoules of gas per day. 

The Beetaloo’s star is rising, with industry heavyweights like Santos and pipeline operator APA Group betting big on the region. Empire’s wet gas reservoirs could command a premium in markets like Japan, where demand for low-CO2 gas is surging. 

With a production license for up to 12 wells, Empire is tantalisingly close to delivering its first commercial molecules in the Top End. Buoyed by a bulging bank balance, a world-class asset and a clear path to production now, the soon to be Beetaloo Energy is poised to enter the vanguard of players that will look to make money from what is likely the largest endowment of gas in the country.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au