Ann: Strong Carpentaria-1 Flow Rates, page-3

Seems to me these bits tell us what we need to know

1) Empire’s Carpentaria-1 vertical well has flowed gas to surface at rates that exceed expectations including an initial peak rate of >0.5 mmscf / day and an initial stabilized rate of 0.37 mmscf / day over a 72-hour test period and an instantaneous peak rate following a short shut in of >1.6 mmscf / day

2) The flow rates achieved to date at Carpentaria-1 compare favourably to other wells drilled and flow tested in the Beetaloo Sub-basin, particularly given the reduced development costs Empire expects in future given the shallower depths in which the target shales are present in Empire’s Beetaloo Sub-basin properties.

a)The first flow test of Santos’ Tanumbirini-1 vertical well flowed at initial rates of 1.2 mmscf / day settling down to 0.4 mmscf / day1. The second test, which followed an extended shut-in period, flowed at higher rates.

b)Origin Energy’s Kyalla 117 horizontal well flowed at 0.4 - 0.6 mmscf / day over 17 hours2 and Origin Energy’s Amungee NW-1H horizontal well, which had 11 fracture stimulation stages, flowed at 1.15 mmscf / day over a 57-day test3
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Empire’s Carpentaria-1 initial vertical flow rates indicate that the shallower liquids-rich gas window of the Eastern side of the Beetaloo Sub-basin has the potential for commercial hydrocarbon production in future horizontal wells which may have up to 100 fracture initiation points from 20 – 30 fracture stimulation stages, rather than the 4 stages fracture stimulated in the Carpentaria-1 vertical well. Optimization of fracture stimulation design in future horizontal wells is likely to further enhance productivity.

While Carpentaria-1 vertical flow testing operations are ongoing, Empire is continuing preparations for the drilling and completion of its first horizontal appraisal well. That well will be fully funded from Empire’s existing cash at bank.