Ann: Red Gully North-1 Discovery Delivers 53m Gas Pay, page-3

Empire Oil and Gas CEO Ken Aitken said the amount of gas pay logged in the RGN-1 exceeded Empire’s pre-drill expectations.

"Empire is delighted with the results achieved from the RGN-1 drilling. Our technical team is now focused on delivering a successful completion and flow testing in early 2016 to determine flow rates from the well."

"While awaiting delivery of all items to undertake the testing program, the Empire team will carry out a volumetric assessment to determine the resource size. We look forward to updating our shareholders on those results as soon as possible."

"The flow rates and volumetric assessment will play an important role in determining whether gas and condensate produced from the RGN-1 well should either be utilised to (i) increase the life of the nearby Red Gully Processing Facility or, (ii) expand production capability beyond the current design capacity of 10TJ per day. Provided we achieve satisfactory results from flow rates and volumetric assessment, RGN-1 will play an important role in strengthening Empire’s existing production hub, leveraging the company’s 100% owned infrastructure, further improving production margins and significantly increasing cashflow."

"In addition to the immediate benefits of the RGN-1 well, this discovery further strengthens the value proposition and future prospectivity of the northern parts of EP 389 where we are interpreting evidence of structural leads (additional fault blocks) from the results of the Black Swan Airborne Geophysical Survey. Data collected from the RGN-1 well will be utilised to support potential future drilling, most likely following Empire’s next immediate focus on the Lockyer Deep (EP368) and Raven (EP 432) prospects."