Empire O&G Completes Interpretation of Geophysical Survey in Perth Basin

Oil and gas producer Empire Oil and Gas reported Thursday that it has completed the interpretation of the Black Swan Airborne geophysical survey in the Perth Basin, Western Australia. In addition to the existing prospect portfolio, structural highs and leads have been identified in EP 389, EP 432 and EP 454, and Empire now plans to acquire infill 2D seismic to mature the identified leads to prospect status for future drilling.

The Black Swan Geophysical Survey was conducted by international geophysical contractor CGG covering all of Empire’s Perth Basin permits, and was delivered on time and on budget at the end of 2015. The data was acquired on a 0.62 mile (1 kilometer) line spacing, and was designed to improve the sub-surface imaging over the large relatively unexplored areas of Empire’s permits. The survey aimed to accelerate and enhance exploration of all of Empire’s acreage and create a rich lead and prospect inventory.

Empire Chief Executive Ken Aitken said the Black Swan survey results are very encouraging. For the first time Empire has a more complete view of the overall structural configuration of its acreage and, in addition, the survey has identified a number of structural high trends which will be the focus of future exploration activity.

“In particular, the prospectivity of some of the identified leads on these structurally high trends, has been significantly increased by the recent gas discovery at Red Gully North-1.”

EP 389 / 440

Large structural leads have been interpreted in a fairway in northern EP 389, to the north and west of Empire’s Red Gully Production Facility. The recent discovery at Red Gully North-1 has increased the prospectivity of these leads.

As this area lies outside of existing 3D seismic coverage, infill 2D seismic is required to mature the identified leads to prospect status for future drilling. Survey planning will now commence which, along with environmental approval and land access agreements, may take up to 18 months.

Exploration drilling would be contingent on the results of infill seismic, however, any future discoveries would have tie back potential to the Red Gully North-1 gas plant.

EP 432

A very large north-south trending structural high has been identified in the central portion of the permit, on which multiple leads are recognized. The area is being evaluated for large potential Permian gas plays in the Irwin River Coal Measures. Infill seismic is likely to be acquired in the central area of EP 432, in conjunction with the 2D seismic survey planned for northern EP 389.

EP 368 / 426

Major structural trends have been clearly defined and the prospectivity of the deeper Dandaragan trough in the west will be further evaluated along with the planned Lockyear Deep well.

EP 480 / 416

Further evaluation of these permits will be subject to proposals from the current operator, Pilot Energy.



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