Empire Oil & Gas (ASX:EGO) has unveiled a major increase in gas and condensate reserves at the B Sands in its Red Gully-1 well in WA.
The company, which has ERM Power (ASX: EPW) as a cornerstone shareholder, said 1P gas reserves rose 35% to 8.39 petajoules and 2p reserves were up 46% to 14.5PJ.
Empire noted that the upgrade gave the Board "increased confidence" that Red Gully had sufficient reserves to cover Tranche 2 of its gas supply contract with Alcoa.
"The significant increase in Red Gully reserves is excellent news and justifies Empire's belief in Red Gully and its purchase of ERM's 23.6% interest in the Red Gully field," Empire chief executive Ken Aitken said.
"These additional reserves significantly increase the overall value of the Red Gully project."
Empire shares were 0.2c higher this morning at 0.7c.
The company, which has ERM Power (ASX: EPW) as a cornerstone shareholder, said 1P gas reserves rose 35% to 8.39 petajoules and 2p reserves were up 46% to 14.5PJ.
Empire noted that the upgrade gave the Board "increased confidence" that Red Gully had sufficient reserves to cover Tranche 2 of its gas supply contract with Alcoa.
"The significant increase in Red Gully reserves is excellent news and justifies Empire's belief in Red Gully and its purchase of ERM's 23.6% interest in the Red Gully field," Empire chief executive Ken Aitken said.
"These additional reserves significantly increase the overall value of the Red Gully project."
Empire shares were 0.2c higher this morning at 0.7c.