09/11/2017 - 15:59

MinRes swoops on Empire assets

09/11/2017 - 15:59

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Mineral Resources has acquired Empire Oil & Gas’s Perth Basin assets, including the Red Gully processing plant, just more than a month after the energy junior entered administration.

MinRes swoops on Empire assets
The Red Gully facility is now to be controlled by MinRes.

Mineral Resources has acquired Empire Oil & Gas’s Perth Basin assets, including the Red Gully processing plant, just more than a month after the energy junior entered administration.

The Red Gully asset has capacity to produce around 10 terajoules of gas per day, about 1 per cent of Western Australia’s domestic use.

But Empire hit trouble with the Red Gully-1 well in August, when the company was unable to restart gas flow after a production test.

MinRes has said its first priority would be getting the well and associated processing facility back into production, while also working with Empire’s contractors to develop other assets, which would include the Lockyer Deep field.

That is part of a longer-term plan to reduce the company’s internal fuel costs, MinRes said.

Empire entered voluntary administration at the end of September, after receivers took control of the subsidiary that operated the Red Gully facility.

The receivership was after the company had been unable to repay a $15 million working capital facility arranged last year, which had givenMinRes first rank as a secured creditor.

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