Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) and US oil/gas production assets. EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin. The NT energy basins are fast developing as strategic high-calorific gas bolsters for east coast Australia’s future domestic requirements, growing Gladstone LNG ullage and potential supply for Darwin’s expanding LNG export terminals, amid funding support from Territory and Federal governments. Gas reserves issues at the Blacktip field have been compounded by recent unsuccessful in-fill drilling. There is a growing supply shortfall with limited existing alternative sources of supply, which can only enhance the business case for Beetaloo gas. With field data and upgraded Contingent Resource estimates, EEG is in a prime position to move along the commercialisation pathway, targeting a FID by end-2023 on a 25TJd initial development. With LNG-scale gas potential and a tightening supply situation, EEG continues to represent the strongest leveraged play to the transformational potential of the NT basins – we suggest market opportunity is not going to be the limiting factor to commercial success.
