Empire Updates on Completion & Testing Program at RGN-1 Discovery in WA

Perth Basin domestic gas producer Empire Oil & Gas NL provided Wednesday the following update on the completion and testing program currently underway at its 100 percent owned Red Gully North-1 (RGN-1) discovery in permit EP 389 in Western Australia.

Progress

The completion rig and personnel were demobilized from the RGN-1 site. The well testing equipment was mobilized to site, and then installed and pressure tested. Wireline swabbing of the C sand commenced to remove sufficient completion brine in the tubing string to induce flow in the C sand. This operation has taken longer than expected due to losses of completion brine to the formation during the perforating and completion program. Minor wireline equipment issues have also slowed progress. Positive indications that the well is progressively being induced to flow are evident.

Planned Activity/Forward Program

Continue wireline swabbing to induce flow from the C sand. Flow the C sand to determine well deliverability and collect reservoir samples. Isolate the C sand then induce flow and test the upper and lower D sands separately. Determine well deliverability and collect reservoir samples in the upper and lower D sands.

Background

Following successful drilling operations, RGN-1 was suspended on Dec. 29, 2015. RGN-1 is located in EP 389, approximately 2.5 miles (4 kilometers) to the north of the Empire's 100 percent owned Red Gully Processing Facility. RGN-1's proximity to the Red Gully Processing facility will allow for a faster tie-back and commercialization of the well after a successful completion and test program.

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